Well, at £350,000 the average asking price is up 9% compared to 12 months ago (when it was £320,000). And with 5% more properties for sale (338 now compared to 323 a year ago), on the face of it the market seems to be booming. Unfortunately, when you delve a little deeper the story doesn’t look so promising.
You see, there may be more stock on the market, and at a higher price, but it isn’t actually selling! In fact, the number of properties showing as sold subject to contract now (202) is down a massive 25% compared to 12 months ago (270).
What’s more, according to Land Registry data, when those sales are going through (at an average of £368,328) they are doing so at a lower price than the same time a year ago (£369,963). That’s the first time since April 2013 where Chichester’s property prices weren’t higher than the year before. Prices quickly bounced upwards back then, so it’ll be interesting to see how the coming months fare on that front.
Perhaps more worrying is the declining number of property sales in Chichester. In April 2018 (Land Registry data trails the market by a few months) there were 102 sales, compared to 145 in April 2017 (a drop of 30%). It wasn’t a one-off either; the first third of 2018 has seen a 22% drop in the number of properties sold; just 502 in January to April vs 644 in January-April 2017. It’s even worse news for the new-build developers, where volumes were down 38% in the first third of the year. That doesn’t bode well for the thousands of new homes that are on the horizon for our city.
And then we move onto Chichester’s rental market. Again, supply is up; with 120 properties available to let compared to 96 a year ago (an increase of 25%). But there’s been a 5% decrease in both the number that have been let agreed (78 now vs 82 a year ago) and in the median rental price (£950pcm now vs £1,000pcm a year ago). The biggest drop in this regard has been in four-bedroom houses (their rental prices down 6% on average), whilst the higher than normal volume of two-bedroom properties on the market (where rents are down 2% on average) is dragging down the overall average.
So, it seems 2018 isn’t shaping up to be a good year for Chichester’s property market. Then again, it depends who you ask - for those looking for a home to buy or rent there’s more availability at lower prices, which might help some people either get onto the housing ladder or make the next step up its slippery rungs.
For more tips about buying, selling, letting and renting in Chichester, please visit www.chipropertynews.co.uk
(This article was featured in the Chichester Observer's property section on August 23, 2018)
Clive Janes, CRJ Lettings
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.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP
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