Tim Bannister, Rightmove’s director of property science, said: “The interest rate brakes being applied more strongly to slow the economy are now beginning to bite in the housing market”.
The number of sales agreed in June is 12% behind 2019’s more normal market level. Transactions in Cardiff are 21% lower than last year which is a large drop in current supply. This helps keeps the values temporarily buoyant.
It is reported that “right-priced” homes are still attracting motivated buyers due to the shortage of property for sale compared with historic norms.
The average price of property in Cardiff is now £256,043. This is still 7% higher than last year but prices are slowly declining. The prime market in Cardiff and the UK is struggling the most to attract buyers willing to pay premium rates.
After a period in which property prices have risen sharply, sellers can be overly optimistic in their expectations. Experienced and knowledgeable agents will price the property for the current market, so it is highly important to not to be dupped into over pricing your property. A minority of agents are choosing to over price their valuations to get the property on their books. The property is then reduced a few months down the line. Having been in this industry for two decades, seeing this practice of over valuing to hit targets really frustrates me. The vendor is the one who ultimately loses out on time and money.
Rental values in Cardiff are seeing significant growth. This is due to a sharp decline in the supply of properties for rent in Cardiff. Interest rates are driving landlords in increase rents, plus new overly strict legistlation in Wales also driving local landords to sell up and get out of the private rental sector. This is causing a housing crisis and the Welsh Government needs to address the issue with a carrot rather than a stick. I am personally offering my help and advice to them. Please get in touch so we can address this looming crisis.
I offer advice to vendors, investors, developers and landlords. If you have a question, let me know.
Working with property professionals for over 20 years providing advice and services to all property investors.
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