Not that anyone knew it at the time, but ten years ago marked the ‘credit crunch’ induced market low for property prices in Chichester, having faced 17 months of falling prices.
Property prices peaked in Chichester at £291,021 in October 2007, just weeks after Northern Rock had faced queues of people outside its doors seeking to withdraw their money; an event which, in hindsight, marked the beginning of the financial crisis.
In the following 17 months, property prices in Chichester fell 21% to sit at £228,594 in March 2009, before rebounding 17% in the following year and 70% overall in the decade since, to sit at today’s average sale price of £388,261.
Whilst prices in Chichester fell every month between October 2007 and February 2008, it at first appeared the market had stabilised as prices increased again, getting close to the previous peak in August 2008 with prices rising back to £289,147. September 2008 - March 2009 was rough though, with the average home in Chichester losing over £60,000 in those short six months - that’s £332 per day!
It’s interesting to compare Chichester’s property price movements during this time compared to the UK as a whole. Whilst UK house prices peaked at a similar time (September 2007), fell a similar amount from peak to trough (19%) and bottomed out at the same time (March 2009), they have ‘only’ increased by 49% since, which is much less than in Chichester. And whilst Chichester broke through its October 2007 peak by September 2012, the UK only caught itself up again in August 2014.
I would therefore argue that Chichester has proven to be more resilient through the bad times than the UK as a whole. This aligns itself with the fact that property prices in Chichester have historically increased more than the UK average; which is why I often say property in Chichester is likely to bring with it stronger capital growth in the future.
This may in part be due to fewer ‘distressed sellers’ in Chichester i.e. those who need to sell, as 41% own the home they live in without a mortgage, compared to the UK average of 31%. And with the Brexit deadline just a few weeks away and prices having fallen for the past few months both in Chichester and the UK, it may be that resilience will be the name of the game in the coming months too.
If you’d like to follow the progress of Chichester’s property market going forward, please subscribe to my weekly e-newsletter at www.tinyurl.com/ChiPropertyNews
 |
(This article was featured in the Chichester Observer's property section on February 28, 2019)
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
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:
- Follow The Buy-To-Let Property Investment Market in Chichester
- Chichester Property Market LinkedIn Page for Clive Janes
- CRJ Letting Agents Chichester Facebook Page
- CRJ Letting Agents Chichester Twitter Page
- Chichester Investment Property Management Specialist CRJ Letting Agents Website
c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP
No comments:
Post a Comment