Wednesday, 29 March 2017

Only 514 Properties For Sale in Ramsgate





2017 has started with some positive interest in the Thanet property market.  Taking a snap shot of the Thanet property market for the first quarter of 2017, the picture suggests some interesting trends when it comes to the number of properties available to buy, their asking prices and what prices properties are actually selling for.

Let us first consider the number of properties for sale in Ramsgate, compared to 12 months ago:

Type of Ramsgate Property
Number of Properties on the Market 12 months ago
Number of Properties on the Market now
% change
Detached
103
96
-7%




Semi
121
132
+9%




Terraced
76
94
+24%




Flat
218
163
-25%

So when we add in building plots and other types of properties that don’t fit into the four main categories, that means there are 514 properties for sale today compared with 564 a year ago, a drop of 9%.

Next, Ramsgate asking prices, compared
to the same as a year ago, are 4% higher.

With that in mind, I wanted to look at what property was actually selling for in Thanet. Taking my information from the Land Registry, the last available six months property transactions for CT11 show an interesting picture (note the Land Registry data is always a few months behind due to the nature of the house buying process and so November 2016 is latest set of data). The price shown is the average price paid and the number in brackets is the number of properties actually sold.


Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Detached
£362,000 (4)
£371,500 (7)
£307,125 (4)
£285,250 (2)
£308,333 (3)
£292,000 (5)
Semi
Detached
£243,444 (9)
£283,607 (14)
£252,833 (15)
£280,790 (5)
£223,360 (10)
£218,294 (13)
Terraced
£209,302 (23)
£219,832 (27)
£216,663 (23)
£207,487 (15)
£186,906 (24)
£222,968 (16)
Flat
£135,438 (17)
£128,423 (13)
£140,964 (14)
£124,124 (8)
£140,409 (11)
£124,899 (15)
All
£202,931 (53)
£232,392 (61)
£213,888 (56)
£202,658 (30)
£191,434 (48)
£198,750 (49)



So what does all this mean for the property owning folk of Thanet?

Well, with less property on the market than a year ago and asking prices 4% higher in Ramsgate, those trying to sell their property need to be mindful that buyers, be they first timers, buy to let landlords or people moving up the Thanet property ladder, have much more price information about the Thanet property market at their fingertips than ever before.

Those Thanet people who are looking to sell their property in 2017, need to be aware of the risks of over pricing their property when initially placing it on the market. Over the last 12 months, I have noticed the approach of a few Thanet estate agents is to suggest an inflated asking price to encourage the homeowner and secure the property to sell on their books. The down side to this is that when offered to the market for the first time, buyers will realise it is overpriced and wont waste their time asking for a brochure. They won’t even view the property, let alone make an offer. So when the price is reduced a few months later, the property has become market stale and continues to be ignored.

Whilst the Thanet property-market has an unassailable demand for property – there is one saying that always rings true - as long as the property is being marketed at the right price it will sell.

If you want to know if your Thanet property is being marketed at the right price, send me a web link and I will give you my honest opinion. www.thanetpropertyblog.com.

Friday, 17 March 2017

Thanet First Time Buyers borrow £36.2m in the last 12 months












Starting with the bigger picture, over the last 12 months in the UK, 1,061,557 properties were sold with a total value of £223.74 bn. To give that some context, ten years ago 1,581,727 properties sold with a total value of £405.56bn, so it can be seen the number of people moving house has dropped by over a third over the last decade.

Whether you are a landlord, homeowner or tenant, it’s always important to keep an eye on the Thanet property market, not just from your point of view, but also from every player’s point of view. Over the last 12 months, 755 properties have sold (and completed) in Ramsgate, worth £155.7m. Interestingly the number of properties changing hands in Ramsgate has also dropped when compared to a decade ago.

It might surprise you that first time buyers in 2017 will benefit from a slight decline in Thanet buy-to-let investors.

Those looking to buy a home in the spring and summer of 2017 will face a far less competitive Thanet property market than the same time of year in 2016, when the urgency to beat the buy-to-let stamp duty hike was in full swing.  

Many landlords brought forward their purchases to beat the tax, and since then, the number of buy-to-let purchases has dropped slightly. First time buyers have taken advantage of that and have increased their buying. In fact, looking at the Bank of England figures, this is what UK lenders have lent on buy-to-let properties versus first time buyers over the last 12 months 

Q4 2015 - £1bn buy-to-let mortgages vs £1.31bn for first time buyers
Q1 2016 - £1.35bn buy-to-let mortgages vs £1.08bn for first time buyers
Q2 2016 - £760m buy-to-let mortgages vs £1.28bn for first time buyers
Q3 2016 - £827m buy-to-let mortgages vs £1.42bn for first time buyers

When looking at the figures for Ramsgate itself, first time buyers have borrowed more than £36.2m in the last 12 months to buy their first home. This is a ringing endorsement of their confidence in their jobs and the local Thanet economy. Those 20 and 30 something’s who are considering being first time buyers in 2017 will find that the number of properties on the market has never been as good as it has for quite a while, meaning you have more choice of properties and less competition from so many buy-to-let landlords than a year ago.

Rightmove announced nationally that new seller enquiries are 26% up on the same time last year giving the stoutest indication that we may see a slight ease in the lack of properties on the market. When I look at the Ramsgate market, at this moment in time there are an impressive 535 properties for sale, so plenty of choice. All this will be welcome news amongst Thanet first-time buyers with a combination of a proportional reduction in new investors and landlords.

2017 will be an interesting year for all homeowners, be they buy-to-let landlords, existing homeowners or future homeowners.  For more thoughts on the Thanet property market like this, you might want to visit the Thanet Property  Blog. www.thanetpropertyblog.com