Asking Prices of Stamford Property Down 2% In The Last Year

I had an interesting question the other day from a homeowner in Stamford who asked me the difference between ‘asking prices’ and ‘property values’, and why it mattered?

When it comes to selling property, there must be agreement between the purchaser (buyer) and seller (vendor) for a property sale to take place.

The value a buyer applies to a property can massively differ from the value a seller or mortgage company places upon it. The seller, the buyer and the mortgage company must find an agreeable value to assign to a property so the sale can proceed.

In many of my articles about the Stamford property market, I talk about values, i.e. what property in Stamford actually sells for, but I haven’t spoken about ‘asking prices’ for a while. Now asking prices are important as they are one of the four key matters a potential buyer will judge your property on (the others being location, bedrooms and type). Price yourself too high and you will put buyers off. So let’s take a look at the Stamford numbers.

Over the last 12 months asking prices (i.e. the price advertised in the paper and on Rightmove etc.,) in Stamford have decreased by 2%, taking the average asking price in Stamford to £336,400 (down from £344,200 twelve months ago).

Interestingly though, when we look at detached and terraced property for example, a slightly different picture appears.

12 months ago, the average asking price for a detached house in Stamford was £519,400 and today its £528,200 (a rise of 2%); whilst over the same 12-month period, the average asking price of a terraced property was £259,300 a year ago, and today its £325,200 (a rise of 25%). Therefore, the decrease in other property types have brought down the total average figure.

However, my research shows that the supply of property for sale in Stamford is beginning to increase. In December 2015, there were 120 on the market in Stamford today there are 130 properties on the market (up 8%). This will mean homeowners looking to sell will need to be conscious of how their property compares against others on the Stamford property market.  The Stamford property market still has substantial momentum and sufficient demand remains. This noteworthy increase in supply since Christmas is currently providing more choice for buyers and is tempering asking prices.

… And here is the second point to make. Asking prices are one thing, but what a property sells for (i.e. value) is a completely different matter. These are the average prices achieved (i.e. what they sold for or the average value) for property in Stamford over the last 12 months...

·         Overall Average          £277,300

·         Detached                     £391,800
·         Terraced                     £230,200

You can quite clearly see, there is a difference between what people are asking for property and what it is selling for.

 

The underlying fundamentals of low interest mortgages and tight supply remain prevalent in the Stamford property market however, the number one lesson has to be this ...

 

If you want to sell, be realistic with your pricing from the beginning.

If you have a property and are unsure of its current value, please contact our sales director Adrian McCarthy.

Email: Adrian.mccarthy@upp-property.co.uk or please call Adrian on 01572 725 825

We look forward to discussing property with you.

David Crooke
Managing Director
UPP Property Agents 01780 484 554