Welcome to May's housing report for Lancaster ( LA1 ). This months report really is a story of two halves. On one hand, you have properties which are getting snapped up in a matter of just a few days. On the other you have a Lancaster Housing Market which is struggling, with over half of the available properties for sale, still sat on the market now for over 12 weeks. What is going on?
There is no doubt that the number of new properties coming available has dropped considerably. Year on year it has dropped by 23%, last month it was down by 20%. There is a lack of choice, yet still many homes on the Lancaster market are struggling to sell. Why when buyers are actively looking?
What happened in May in Lancaster?
In May 2019, 77 properties went under offer. This was 11 less than May 2018 but 2 more than the previous month.
Only 103 properties came available for sale across the city. This has to be a real concern and it is reflective in the lower level of sales. In May last year, 134 people put their home up for sale. There is now a serious shortage of new properties coming available for sale, for example only 14 properties that were new to the market in May had 4 beds or more.
Average online property views have increased. Daily, on Rightmove, the average property in May was achieving just 45.1 daily views. Last year it was 34.9 views. Buyers are looking - they are just struggling to find what they are looking for. As a comparable, our properties achieved an average daily view of 60.5 views, which of course is reflective in our level of sales.
May's sold breakdown is as follow
Upto £125,000 21 properties
£125,001 - £250,000 45 properties
£250,001 - £500,000 10 properties
£500,000 2 property
The higher end market
The higher end market has started to show an increase in activity as local homeowners start to move up the housing market chain. Month on month sales above £250,000 was up by 70% as academics look to both buy and sell in preparation for new jobs when the new academic year begins.
The lower end market
This month the lower end of the market ( under £125,000 ) accounted for just 27% of all the sales in LA1. Several new laws have come into force in the rental market - is this starting to have an effect on Lancaster landlords buying? It is something to keep an eye on.
What type of property sold?
Terrace homes always sell well in Lancaster and as a city, we have lots of them. The demand is now for homes with gardens or excellent courtyards and yards. It is also interesting that of the 11 apartment sales, 5 were for the over 55, retirement market. I've always said this type of property sells better in the Spring!
Sales by type
Detached homes - 5 properties
Semi detached 27 properties
Terraces homes 32 properties
Flats 11 properties
Sales by area
LA1 1 - 5 properties
LA1 2 - 15 properties
LA1 3 - 17 properties
LA1 4 - 22 properties
LA1 5 - 18 properties
16 different estate agents were involved with the 77 different properties sales in LA1 in May.
We had some great successes at JDG. 30% of all the sales in LA1 in May were with our agency. We agreed 23 of these property sales. Over 50% of these property sales found buyers in under 3 weeks. Price your home fairly, market it right and it will sell.
Today there are 438 properties for sale in LA1. It is hard to believe that 257 of these have been for sale for 12 weeks and longer. Overvaluing now is becoming a big problem. Ask yourself, why haven't these homes sold? Please look at the market comparables. If you are asking more for your home than other similar homes, ask yourself - do you actually offer more?
If you are thinking of moving this Summer, I would love to help. Call us on 01524 843322 or why not drop me an email at email@example.com
Ps. Why not try out our handy online valuation tool? It is not as accurate as having us around but in under 60 seconds, you could have a good indication as to what your home may be worth. Why not give it a try?