The
average asking price of property in Warminster dropped by 10.9% or £34,288 compared
to a year ago, taking the current average asking price to £280,949 compared
with £315,237 this time last year.
The
overall drop in asking prices is being put down to sellers being more realistic
with their pricing and looking to benefit from the impending mortgage interest
rate rises which are likely later in 2018. This is great news for first, second
and third time buyers in Warminster starting their property hunting in the active
late spring / early summer market this year.
Even
better news is that whilst first time buyers also have to pay less for their
property, they also have the bonus of the Chancellor stopping Stamp Duty being
paid by first time buyers!
Looking
at the different sectors of the Warminster property market, splitting it down
into property types, one can see what is happening to each sector of the market
with regard to their average asking prices now compared to a year ago. So looking
at the pound note amounts…
Interestingly,
when one looks at the percentages, the most movement in average asking price pressure
is in the detached property type sector.
Now,
I must stress this overall drop in the asking prices of Warminster property
doesn’t necessarily mean the value of Warminster property is going down by the
same amount.
Only
time will tell if the current levels of Warminster asking prices is a correction
of optimistic house sellers after a couple of months of over enthusiastic asking
price rises, or is it an initial sign that property values are slipping. To
judge what is really happening to the Warminster property market, I believe these
asking prices must be viewed in conjunction with both the values achieved and
the length of time it takes to sell the property.
Also,
these figures are averages, so it might also mean less expensive types of Warminster
semi-detached or Warminster detached, are on the market now, this dragging the
average down, compared to a year ago.
One
thought I would like to share with the Warminster homeowners and landlords wanting
to sell their property, is the fact they need to be aware of the competition of
other people selling their homes. One factor that could be contributing to a
subdued demand for local property is the progressively strained buyer mortgage affordability
(i.e. banks telling people they can only afford so much on a mortgage), meaning
more and more buyers are hitting their maximum on the amount they are able to borrow
on a mortgage sooner than they thought.
So, what does this all mean, especially for buy to
let landlords in Warminster? During these months of flux, there could be some
property bargains to be had. Lower asking prices mean you are buying in better
yields and potential capital growth at the same time. Many Warminster landlords
pick the phone up or email me with Rightmove links, asking my opinion on the
BTL potential of property. I don’t charge for that service, so if you don’t want
to miss out, follow what they do and make contact ... I don’t bite!
