The UK's property market landscape has experienced a significant shift over the last couple of years.
In October 2021, there were 424,809 properties for sale in the UK. That now stands at 664,780, a rise of 56.5%. Looking at the number of property sales in the UK in October 2021, 111,229 properties were sold subject to contract (stc). In October 2023, that figure dropped to 88,737 properties sold stc, a reduction of 20.3%.
Yet, then I thought to myself, this drop in property sales could have just been an October 2023 thing, so I looked at the year to date (YTD) figures for both 2021 and 2023.
Looking at the number of property sales, the number of properties sold stc by the YTD to the end of 31st October 2021 in the UK was 1,252,108. YTD to 31st October 2023, the number of property sales reached just 933,690, a reduction of 25.44%.
With the number of properties coming on to the market for sale in the UK increasing, contrasted against a decline in house sales, we find ourselves in a peculiar environment regarding the property market.
Before I discuss that, I want to look at the picture closer to home to see if the same is occurring locally to see if the numbers match the national picture.
The Romford stats (for RM1-RM7 combined) are as follows.
In October 2021, there were, on average, 1,005 properties for sale in the Romford area.
In October 2022, there were, on average, 1,122 properties for sale in the Romford area.
In October 2023, there were, on average, 1,511 properties for sale in the Romford area.
That means there are …
50.3% more Romford homes are on the market today than two years ago
Next, let me look at property sales.
In October 2021, 319 properties sold (stc) in the Romford area.
In October 2022, 231 properties sold (stc) in the Romford area.
In October 2023, 278 properties sold (stc) in the Romford area.
12.9% fewer Romford homes sold in October ‘23 than in October '21
So, what does this all mean for Romford homeowners?
The surge in available properties leads to increased choice for prospective buyers, which is a welcome relief from two years ago when there was limited choice for homebuyers. Yet, on the flip side, it's increasing competition among sellers, making it harder to stand out in a crowded market.
57.2% of Romford homeowners were successful in selling and moving home in the last 12 months
(Interesting when you compare that with the national average of 54.87%).
Two years ago, that figure was 71.7% in Romford.
Romford, even with its rich history, transport links and great schools, has always been an attractive destination for families and professionals alike. But with the increase in available properties, our unique selling propositions could be overshadowed if we don't position our homes correctly.
The danger of overpricing your Romford home
Here's where it gets interesting. In the vast database of property insights I've accumulated over the years, there's a recurring theme. When homeowners price their properties too high, especially in a saturated market, it has dire consequences.
- Fewer Viewings: Buyers, especially in today's digital age, are more informed than ever. They compare homes on the portals, and if yours seems overpriced compared to similar properties, they might not even give it a second look, let alone view it.
- Longer on the Market: Overpriced Romford homes tend to stay on the market longer. And the longer a home is on the market, the more potential buyers wonder, "What's wrong with it?".
- Property Becomes 'Stale': A Romford home on the market too long loses its appeal. It becomes 'stale', and even if you reduce the price later, the initial buzz around a new listing is lost. You're then playing catch-up, often leading to selling at a much-reduced price than if it was right from the outset.
- Missed Opportunities: As the property remains unsold, homeowners might miss out on favourable mortgage rates for their next purchase or a dream home that's up for grabs.
The power of right pricing your Romford home
There are many benefits to correctly pricing your home from the start. Not only does it attract more potential buyers, but it also increases the likelihood of multiple offers, potentially driving up the final sale price. It also means a quicker sale, reducing the uncertainty and stress accompanying the selling process.
Ignore the doom mongers
It is important to remember that whilst we have seen a reduction in property sales in 2023 compared to 2021, the property market is in decent shape. It must be remembered that total UK house sales YTD to the end of October 2023 are only 94.0% of the 2017/8/9 YTD average. So, whilst it's tough out there – it isn't as bad as some newspapers suggest. Again, I must stress the importance of realistic pricing.
What should Romford homeowners do?
If you're considering selling your home in Romford:
- Research the Romford Property Market: Understand the current market dynamics and see where your property stands. Look at what is for sale and sold stc. Remember, research shows that properties in Romford sell for within 1% to 2% of the final asking price.
- Seek Professional Guidance: Engage with an experienced estate agent who knows Romford's property market. Their advice on pricing can be invaluable.
- Be Realistic: Remember, the goal is to sell your Romford home, not have it linger on the market. An attractively priced home often leads to a faster sale and a better overall outcome.
The landscape of the Romford property market is ever-changing. While the increase in new properties for sale presents challenges, it also offers opportunities for those who navigate it wisely.
My message to Romford homeowners is not to fall into the trap of overpricing your home for sale. With the right strategy, backed by research and professional expertise, we can make the most of the current scenario and ensure your home finds its ideal buyers.
To all Romford residents, happy selling and here's to a prosperous property future!