One of the key factors affecting the health of the Wigston property market is the number of properties for sale at any one time. The issue with housing is that when demand goes up, unlike a chocolate bar factory, which can add a couple of hours’ overtime to increase supply/production to satisfy demand, it takes a good 18 months to two years from planning permission to someone moving into a home. I have talked at length (and proved) in previous articles that we are still not building enough homes in the long term in the Wigston area… Yet, for the short term, a good indicator is the number of properties for sale and how long they have been on the market.
How long a property has been on the market is important as a guide to how the property market is performing – potential buyers can always find this information on the Rightmove and Zoopla listings (if you don’t know where – drop me an email or message and I can let you know).
So, let’s have a look at what is happening in Wigston, both in terms of the number of properties for sale and how long they have been on the market compared to a year ago, then discuss what that means for the current state of play in the Wigston property market. So to start, let’s look at the number of properties for sale in Wigston compared to a year ago.
Interestingly, you can see there has been a proportional increase of 75% in apartments on the market in Wigston and a 58% increase in detached properties. Overall, in the last year, there are 44% more properties on the market in Wigston, compared to a year ago. Now, let’s look how long they have been on the market…
It’s interesting to see that the biggest jump in the number of days on the market has been terraced houses, from 31 days to 85 days.. demand and supply working again. Also, the length of time an average Wigston property has been on the market has increased by 99% in the last year.
So what does this all mean for Wigston buy-to-let landlords and Wigston homeowners looking to buy and sell? Well, if you are thinking of selling, as the number of properties on the market has increased and the length of time Wigston properties are on the market has also increased, you have to be mindful that realistic pricing is key to getting the property sold. If you are a buyer, that means you find yourself in a better position to negotiate a good deal on your Wigston property purchase.
There is an argument to suggest that property buyers see excessive days on the market as an indication that the seller is becoming desperate to sell. Buyers are also likely to believe there might be something wrong with the home, a defect that caused other buyers to pass it by. This can concern them when they view the property – if they view it at all – as that possible and perhaps made-up defect will be on their minds, even if is only subconsciously.
Normally, both assumptions are wrong. A property can loiter on the market for several reasons. The most common reason is overvaluing or overpricing. In an effort to get the property on the market, some estate agents may have deluded the seller into believing the property was worth more than the property market will bear. Don’t get me wrong, if you don’t ask, you don’t get and homeowners naturally want to get the best price for their home, and so test the market. Yet, if you aren’t getting a steady stream of viewers after a few weeks, then that test can backfire. You see, the biggest trap for house sellers using this strategy is setting the asking price too high to see if they can find someone to pay that inflated price, then finding there is nobody in the market that will pay the price, and keeping that price high for too long.
Sellers can also get stuck on an asking price and be willing to ‘wait out’ the market until it catches up to what they want for their property – yet we aren’t in that type of property market at the moment. Consumer champion Which said that if you have to reduce your asking price by 5% or more, it adds an extra 64 days to the sales process, meaning you might lose the property of your dreams.
Also, countless times I have seen house sellers insist on an inflated asking price, reduce 12 weeks later, only for buyers to think there is something wrong with it. The homeowner then gets fed up and accepts a lower offer to get the property sold, whereas if they’d gone onto the market at the right asking price, they would have achieved much nearer to what they deserved for their property.
So, if you are looking for a bargain – all the portals (Rightmove, Zoopla and On The Market) allow you to search and sort by the length of time on the market as well as the asking price. Who knows – there could be a bargain waiting for you!