Our Business Development Director, Steve Neocleous, comments on the Brighton & Hove property market and the current supply and demand levels that are affecting sellers and buyers.
“The laws of supply and demand mean that inevitably when supply is limited; demand is high. This is particularly true of the housing market with the added complication that when supply is limited, and as a result demand is high, it means that we also see rising house prices too.
Low supply in the housing market can cause all sorts of problems because we get into a self-perpetuating cycle, where people want to move but can’t see much new stock coming onto the market and therefore, do not put their own properties on the market, which of course is only serving to fuel the problem. As mentioned above, it also means that we see rising house prices which can push some buyers out of the market. Whilst multiple offers on properties is great news for the seller, it results in many people becoming disheartened with the process and it increases the chances of that phenomenon that is known as “gazumping” coming in to play.
We have seen low supply and strong levels of demand now since the Stamp Duty Holiday came to an end, the number of transactions during the holiday increased dramatically meaning that many people who might have moved in the latter part of 2021 had already done so. Spring is traditionally a good time to sell though, gardens look better, the sun is shining and generally people are in better moods as we emerge from the winter months into the warmer weather.
However, nothing is ever that simple, and so to expect more property to come to market without any other issues is probably too much to hope for. We are now seeing more properties come to market, our own housing stock here at Mishon Mackay has risen since the start of the year and the Estate Agency Industry Press would suggest that this is happening across the country, as this Estate Agent Today article demonstrates.
Those issues that we’re referring to, are of course things like interest rates, rising inflation and in general the rising cost of living. Will this mean that the market will stall again just when things were looking more promising? It could well mean that, and so our advice would be not to delay at all if you are thinking of moving. Stock levels have not yet overtaken levels of demand. So, we are in a period currently where you could, and should still, sell for a very good price, get plenty of interest, and with a few more properties coming to market, you should be able to find somewhere to move to. Leave it too long though and stock levels will overtake demand which will result in prices possibly edging back down a little from the peaks that they have reached.
In summary, the indicators are suggesting that now is a good time to sell and a better time to try and find somewhere to buy but delay this process and you could find yourself in a very different market before too long!”
