I was
chatting to a landlord who feels the time is right to buy another buy-to-let before
the 1st April deadline that will see stamp duty rise for landlords. The
problem he is having is that property in Chichester seems to be selling so
quickly!
Not
only this, but properties are selling for more than they were just a few months
ago. Meanwhile the average rent in Chichester has remained flat over the past
year, meaning there’s a decrease in rental yields for those buying now.
In the
past year the time it has taken to sell a property in Chichester has dropped
15%. Whereas a year ago it would take 140 days from first marketing your
property to it being sold and removed from the market, it now takes just 119
days.
With
the time it takes to undertake the legal process of buying not getting any
quicker, I would therefore conclude that this decrease (a significant 21 days)
is all in the time it is taking to find a buyer.
Such
strong demand is why you are seeing more estate agents use open days to conduct
block viewings, thus minimising the length of time it takes to get interested
parties through the door. It is also using ‘social proof’ to extract offers
from keen buyers, physically seeing the strong demand for themselves and
therefore wanting to get in quick before it sells.
This
has been particularly true for properties that at first appear to be ‘cheap’. A
recent doer-upper priced at £250,000 quickly proceeded to sealed bids some 10%
above this guide price.
Currently
it is the semi-detached houses that are selling quickest in Chichester, taking
an average of 84 days, compared to detached houses (110 days), flats (123 days)
and terraced houses (137 days).
In regards
to number of bedrooms, it seems three is the magic number, as three bedroom
homes are proving the quickest to sell (taking an average of 95 days). It seems
bigger isn’t better in this regard as four bed houses are taking the longest
time to sell (an average of 143 days).
Information
like this is not only interesting but can be useful when thinking longer-term
about what property you might wish to invest in. In this case, three bedroom
semi-detached houses are theoretically the quickest to sell in Chichester.
Houses
in general are selling quicker than flats even though the supply of flats to
the market is lower than a year ago. This data also illustrates that people are
still wanting to buy more spacious houses, rather than small apartments.
If you
would like to discuss the local housing market, are thinking of buying a rental
property or already have one you would like let or managed, please get in
touch.
(This article was featured in the Chichester Observer's property section
on 3rd March 2016).
Clive Janes, CRJ Lettings.
www.crjlettings.co.uk
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If you are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
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