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New build market driver in 2016

The increase in new build homes will be a significant factor in the residential market in the year ahead.

During the past nine months new build has been running close to 20% of the residential market in Shrewsbury and indeed across Shropshire. This measured role out of new homes is set to continue – as developers, who now have ample land “ready to go,” construct in phases primarily to the appetite of buyers, but also to match their cash flow.

The effect of this new build housing stock on Shropshire’s residential market place is that the volume of sales has roughly stayed the same throughout the year, excluding a little expected fluctuation between months. As a result supply is going to be, once again, constant and therefore likely to lead to relatively flat prices, rather than any increase in demand pushing prices up.

As always macro factors are likely to impinge, including bank interest base rate levels; the world economy and the UK economy. These, together with life’s other vagaries contribute to the “feel good factor,” this without doubt is something none of us should under-estimate – general confidence will be a key contributor to the 2016 residential market.

From both sides of the fence, vendor and purchaser, the ability to go when the time is right can make, or break, a sale or purchase. It is a fact that ten years ago conveyancing was averaging four weeks; currently it is taking nearer 12 weeks.  Preparation is key – having the right solicitor and finance with all relevant advance preparation in hand so that timelines can be shortened as much as possible.

Premiumsand growth

Even in the current steady market one off properties can attract one off buyers, where price is not the only influence. The right house, in the right location, for the right buyer can yield a very substantial premium to the guide price. This year, at Balfours, we saw several such examples – and very satisfying it is for all parties concerned. Experience tells me there will be more in 2016.

For the forthcoming year and well beyond, growth and optimism in Shropshire’s housing market has seen us, at Balfours Property Professionals, move into new premises. Our new home is The Square, Shrewsbury - do call in if you are passing. Best wishes to you for 2016 and may your residential aspirations flourish.

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