What’s happening in the property market is probably the question I’ve been asked the most in the past week, so if you’re wondering what is actually happening rather than what the media are reporting then here’s your Medway property market update for October.

A lot of things in the world are media led, doom and gloom with nothing but bad news. The increasing price of petrol dominated the news just a few months back but now no mention of the prices coming down what so ever. The property market will always be driven by mortgage interest rates and supply and demand. There’s no doubt mortgages interest rates have increased this year in line with the bank of England base rate rise and they will almost certainly continue to do so. What this means is that property owners will pay more per month for their property. The lending criteria hasn’t changed and the amount of money lenders are prepared to loan hasn’t changed. It has been widely reported that mortgage products have been pulled from the market, this happens all the time, it’s just not so highly reported on. If you are a seller and you have agreed a sale and your buyer has not yet received their mortgage offer then make sure to check in with your selling agent to ensure your buyer is still able to get the mortgage they intended too at the beginning of the process. This is backed up by the Medway Property sales that fell through over the last few months. In August 1501 sales aborted but only 1460 in September.

On top that we have been given stamp duty relief in the past week which will help buyers and sellers alike but it seems only bad news will be reported on your screens. Over the past few years the Medway property market has experienced a historic low for mortgage interest rates and properties for sale and a historic high for demand to purchase. This means we have been in a market that we will likely never experience again in our lifetimes.

Zoopla reports the difference on September last year vs this year and the national 5 year average. In September 2021 buyer demand was up 23% vs the 5 year average. In the same month this year this buyer demand decreased by 15% but still 8% up on the 5 year average. The number of sales agreed was 10% above the 5 year average in September 2021 and this year 3% above the 5 year average. The stock of homes for sale was 31% down vs the 5 year average in 2021 and in September 2022 21% down on the 5 year average. Less than 6% of properties for sale reduced by 5% in September and average asking prices increased by 0.7% bringing house price growth to 8.2%. A slight decrease in buyer demand and a slight increase in properties available for sale will naturally cause a change to market conditions but we are still very much in a sellers market. We’ve gone from a boiling pot of water, bubbling over the sides, to a pot of water that’s still too hot to put your hand in it’s just not boiling over the sides anymore.

Ultimately buyers and sellers have to listen to the activity. If you’re a buyer and your offer has not been accepted and another buyer is prepared to offer more, that property will be sold to the other buyer. If you’re a seller and you’ve received just one offer with no other interest in your property, you must listen to the market and the buyer intel. And remember, any changes in prices will be relative in respect of your onward purchase. I can only report on the sales I have agreed since the week commencing 26^th September but both properties were sold for above the list price with multiple buyers making offers which suggests the rise in interest rates has not yet effected buyers spending power.

I hope this has helped you with any uncertainty you may have surrounding the Medway property market and if you have any questions at all please comment below or contact me on 07557783325. Speak to your local agent before believing the media. I’m here to make your move happen. As the business owner I promise a highly motivated, pro-active and honest approach.