2011′s Property Market Delivered as we Expected
In January last year we issued our first market report during which we recognised 2011 was surrounded with uncertainty but predicted the housing market in Southern Central England would remain steady with market activity and house prices staying constant. Now as we start 2012, reflecting over the past year we are pleased to report our expectations were proven strong.
House prices for those that we have been selling have stayed consistent over the last 12 months with very little change. The Nationwide House Price Index has found that prices increased by 1% in 2011 on a national level and 1.6% in our Outer South East Region, mirroring our experiences. Market activity has also remained consistent with a slight rise as our property sales increased by 5% compared with 2010.
Interestingly, there has been so much publicity around house prices falling over the last few years, but the Nationwide House Price Index report in Q4 2011 stated that the average house price in the New Forest has increased by 61% over the last decade.
Further, there is talk on a national level that there has been a large gap between the asking price and selling price, we are proud to say that over the last 12 months Burkmars has maintained its high percentage of asking price achieved. On average our selling price is 95% of asking price. Demonstrating that those selling their houses in the Lymington area through Burkmars are achieving what they set out to.
What we Expect from 2012
There are many different forecasts being made at the moment concerning the coming year and the property market, demonstrating the uncertainty surrounding the economy. The biggest uncertainty being the Eurozone and how this will effect the UK. The Halifax House Price Index report released on January 6th 2012, sums this up stating “If the UK can avoid recession, we expect broad stability in house prices in 2012”. Whilst the Centre of Economics and Business has predicted “an increase of just over 2%” (The Economist, The world in 2012, December 2011).
Interest rates are expected to remain low for the foreseeable future making mortgages more affordable. The requirements for getting a mortgage are still very stringent making it difficult for first time buyers to get onto the housing ladder, as we have seen over the last four years.
We at Burkmars think that for Lymington, its surrounding villages and the New Forest, house prices and market activity will consistently mirror that of 2011, being best described as steady and level. We have said before, that we think our area is fortunate because it is such an attractive place, to live or for those purchasing a second home, and this protects us slightly from the difficulties felt in other areas of the UK. We were very busy over the Christmas period and our first week back after the new year has been successful which we think reflects a confidence in the local market.
- The Beauty of Milford on Sea in the Winter
In summary 2011 delivered as we predicted a steady flow of buyers and sellers, with demand matching supply ensuring consistent house prices. It is our expectation and hope that through 2012 the housing market will perform much the same providing a constant level of market activity with house prices remaining even. We would suggest that if you are considering selling or buying 2012 will be a good time to move. If you are interested in finding out more about the housing market or discussing your property with us please email enquiries@burkmars.co.uk or phone 01590 676111, alternatively please pay us a visit.