Recent news shows that a fifth of house sales are beating market expectations which means that one in five home buyers are paying above the asking price. Due to the current heated property market and the shortage in properties for sale, properties are going above and beyond expectations. As a result 19% of the properties sold last month in May went for more than their listed price.
Mark Hayward of NAEA highlights that "the number of house-hunters is substantially higher than the number of properties on the market, so competition is always going to be rife". However, with the current rate of new houses being built it is unlikely that this housing issue is going to go away any time soon.
In addition to this argument, many have suggested that not only do we have to rely on new houses being built we have to also take into account current home owners. With current homeowners being put off by stamp duty is it any wonder why there is a shortage of homes available. Many homeowners are beginning to invest money into their homes by making changes such as extensions as it often proves to be more cost effective than actually moving. However, as a result first time buyers are facing a limited market whereby prices are increasing and competition is inevitable.
With all these factors taken into account, many have argued that the most effected by this are first time buyers as their budgets are extremely limited.
As a result, Mark Hayward goes onto argue that "with limited numbers of houses for sale, unfortunately it means that those who simply cant afford to increase their original offer will often be priced out the market". The shortage of houses for sale becomes more evident when looking at the average number of properties available in estate agency branches. These are as low as 44 compared to 60 this time last year.
If you are a first time buyer or are currently a homeowner looking to sell your property, contact us at Lawstore conveyancing today and see how much we can save you!
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