Esher Property Market Update - January 201826th January 2018
2018 is already well under way and at Curchods Esher, we are consistently being asked two main questions:
- Should I avoid moving home given what’s going on with Brexit?
- Have house prices in Esher gone down?
Let’s take a look at those two questions in more detail:
1. Should I avoid moving home given what’s going on with Brexit?
The word Brexit was one of the most used words of 2017 and even made its way into the Oxford Collins Dictionary. As the negotiations for our upcoming departure from the European Union dominated the headlines, this proved to be sufficient cause for further delays in people’s plans to move home. This lead to a lower level of demand for property than what we have become accustomed to and resulted in a reduced level of people successfully moving home in 2017.
However, at the end of the summer we saw a wave of new buyers arrive with a “we can’t wait any longer” mentality, which caused a surge in activity. All of a sudden we noticed properties changing hands at the more normal busy rate and so with a cautious optimism, we were looking forward to a busy start to 2018.
January has delivered exactly that. If your fears of moving are based on Brexit and some of the doubts it is casting over the country as a whole, then you can fear no longer. For the vast majority of the country the Referendum has not had a drastic effect, if at all on their personal wealth and therefore nor has it on their ability to proceed with a move. Buyers who planned to move a couple of years ago, who have waited and waited, are now two years further down the line in their desire to move and we’re already seeing this activity accelerate the pace of the market.
If the higher levels of activity aren’t enough to alleviate your concerns, perhaps consider that most homebuyers are looking at owning their next property for a period of 3-10 years. Property prices in Surrey have increased 300% in the last 25 years and whilst Brexit no doubt will cause some short-term disturbance to the marketplace, history is likely to repeat itself during the term of your ownership with property prices growing once again. It begs the question, why let Brexit put a hold on your own agenda?
In short, in answer to the question as to whether or not you should avoid moving given what’s going on with Brexit, the answer is no. Not if you want to move anyway!
2. Have prices gone down?
If you pay attention to the online portals such as Rightmove, you’ll almost certainly have noticed huge numbers of properties having their price tags reduced. You could be forgiven for thinking it’s a sign that Esher’s property prices have come down and that your own home may have lost value over the last 18 months, but no. What the area has fallen victim to is an across the board over-valuation of property.
With fewer people moving home, many estate agents have resorted to quoting higher and higher valuation prices in order to secure a client’s business. Sadly these overly inflated prices simply do not generate sales. As an onlooker to the market all of these reductions and failed marketing attempts could be seen as fragility in the current market, but in truth isn’t a fair reflection on prices.
Whilst marketing prices might be falling, sale prices have not. At Curchods, we’ve seen buyers quite happy to pay the asking price and in some cases they’ve gone over the marketing price, but that is a result of correct pricing and a realistic outlook from the seller. If your property is priced correctly there are as many buyers out there as ever. But a word of warning, if the marketing price is too high you could be in for a long journey.
Have prices gone down? No, but it is absolutely vital to start your journey to sell your home at a fair and reasonable market price. Be cautious and do not be wooed simply by the highest valuation you receive. Interrogate your estate agent as to how they’ve arrived at that price? What research have they done? How does that research relate to your house specifically? How are they going to justify that price to buyers? This last question is especially important because buyers will need the price justified. By asking your estate agent these questions you should get a good sense about how in tune they are with where the market value should be.
If you are thinking of moving in 2018 I hope the above has helped answer some of your questions, but if you should have any more questions I would be delighted to discuss these with you in more detail.
Joe Dewar Branch Manager, Esher Curchods