Friday, 6 February 2015

Apathy in the Ramsgate Property market


Apathy has hit the Ramsgate housing market as sellers await the outcome of the general election and stricter mortgage regulation suppresses buyer demand.  This is mirrored around the UK as Rightmove reported the number of homes registered for sale per estate agent fell to its lowest level for five years in December, with available stock 10 % lower than in the same month a year earlier.  However, in Ramsgate we actually bucked the trend because in December 2013, 435 properties were available for sale, whilst 12 months later in December 2014 the figure had risen by 20.4%, there being 524 properties available for sale in the town.
Looking at Ramsgate, in greater detail in the whole of 2014, in the Summer each estate agent in Ramsgate had on average 59 properties on its books (as there were a total of 593 properties up for sale in Ramsgate at the peak in the Summer just gone). Our research shows that number had dropped slightly to 53 per agent in January.  While the lack of new properties coming onto the market in the later months of 2014 in Ramsgate pushed asking prices up slightly from November to December, traditionally a quiet season for the housing market, property sellers will need to work hard in 2015 to complete a sale.
The length of time a property takes to sell has increased over the last few months. Two bedroom properties in Ramsgate are now taking 100 days to sell, three bedroom 91 days, four bedrooms 119 days, but here an interesting figure, one beds are taking on average 115 days to find a buyer.
2015 will be the year of the selective mover.  With only 428 brand new properties a year being built in Ramsgate since the turn of the Millennium, this woefully low and insufficient number of new buildings in the City over the past few decades and a systemic change in the type of properties homeowners want (with families splitting etc so we have too many larger houses and not enough smaller ones), buyers are becoming dissatisfied with, and therefore dismissive of what is up for sale.
I would confirm the heat has gone out of the Ramsgate property market and I anticipate a moderate reduction from the high transaction volumes seen in 2014. That might mean Ramsgate landlords could bag a bargain during this period of uncertainty, especially if the financial markets do not like the election outcome. Markets and buyers do not like uncertainty, but savvy Buy to let landlords know buy to let is a long term game, and irrespective of short term apathy, reduction in the quality and quantity of stock for homeowners to buy  or the election, if people don’t buy property they rent. Thanet Council aren’t building any more properties, the council house waiting list is decades, not years for the better type of property .. the only other place to get a roof over your head .. rent a property!  Good old Bricks and Mortar!

Therefore, if you are considering buying a property for investment in the near future, as I don't sell property, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. Email me on a.munns@redstones.co.uk.

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