Chichester Property News: Chichester property 2022

Showing posts with label Chichester property 2022. Show all posts

Thursday, 9 May 2024

£585m spent on property in Chichester in 2023

…£585,653,350 to be precise.

That was the huge amount of money spent on property in Chichester in 2023, according to recently released Land Registry data. That figure is, however, a whopping 29% lower than the total spent in 2022 (£820m).

Interestingly, that decrease was primarily down to the 23% decline in the number of transactions, although the average property also sold for 4% less in 2023 (£447,465) than in 2022 (£466,171). The number of transactions has now been declining each year since 2014 (with the sole exception of 2021). Last year I predicted that a decline in prices towards the end of 2022 would continue into 2023 (correct), although the data suggested there would be little change in the number of transactions (incorrect), which would lead to an overall decrease in the total spend in 2023 (correct). When you consider that an average of 2,525 properties were sold in Chichester each year between 2000-2007 (the last ‘boom’ phase for property), it did not seem unrealistic to expect the number of property purchases to remain steady at 2022’s relatively low 1,758. Instead, 2023 marked the lowest number of property sales in Chichester this millennium, with just 1,309 changing ownership!

This market slowdown has directly correlated with the sudden increase in interest rates. It seems the health of the market, both in terms of price and volume, rests largely on the action taken in this regard. The economists’ consensus had been for interest rate drops to have started by now, then pushing this prediction back to June and now being unsure whether it will happen even then. They also believe the drops will be more gradual than previously thought, which is why mortgage rates have again risen a little in recent weeks.

There is also the political uncertainty of a pending General Election adding to peoples’ reservations of buying right now. You may also have noticed there are quite a few new homes being built around Chichester too, for which we are already seeing developers having to reduce prices to sell and/or slowing down their build rates.

That is why I believe Chichester’s property market in 2024 already looks set to come in lower in terms of both price and volume than last year, resulting in another (albeit probably less steep) decline in the total amount spent on property overall.

To keep on top of the latest happenings in Chichester’s property market, you can sign up to the free weekly Chichester Property News e-mail at www.bit.ly/ChiPropertyNews

This article was featured in...

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}}

Thursday, 27 April 2023

£820m spent on property in Chichester in 2022

…£819,528,482 to be precise.

That was the huge amount of money spent on property in Chichester in 2022, according to recently released Land Registry data. That figure is, however, 12% lower than the total spent in 2021 (£936m).

Interestingly, that decrease was entirely down to the 23% decline in the number of transactions, as the average property actually sold for 13% more in 2022 (£466,171) than in 2021 (£411,599). That pattern is something of a return to normal, as property prices have risen year-on-year for a while now, whereas the number of transactions had been declining each year since 2014 (with the sole exception of 2021). Last year I predicted that a lack of stock on the market would equate to higher prices (correct), whilst pent up demand and more new-build homes being built in the area would also mean an increase in the volume of sales (incorrect).

When you consider that an average of 2,525 properties were sold in Chichester each year between 2000-2007 (the last ‘boom’ phase for property), it did not seem unrealistic to expect the number of property purchases to increase from the 2,274 sold in 2021. Had I looked a little closer though, I would have noticed that 1,522 properties were sold in the first half of 2021, before the market sharply slowed down in the second half, with just 752 being sold i.e. a market slowdown had seemingly already begun.

Then there was the shock of interest rates being increased seemingly month after month from their record low, which put paid to a lot of people’s intentions (and affordability) of buying a property. That seems to be the number one reason why now the consensus in the media is for a market slowdown - both in terms of property prices and number of transactions.

If I look at the data for 2022 though, the number of sales was relatively consistent throughout the year (863 in the first half and 895 in the second half), whereas the average price started to decline towards the end of the year. If that trend was to continue, we might expect relatively little change in the number of sales in Chichester, whilst the average price does indeed look set to decrease. That would mean the total amount of money set to be spent on property in Chichester in 2023 will be lower than last year and that 2021 might in fact have been the peak of the market in this respect (for now at least).

To find out and to keep on top of the latest happenings in Chichester’s property market, sign up to the free weekly Chichester Property News e-mail at www.bit.ly/ChiPropertyNews

This article was featured in...

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}