What’s Really Happening to House Prices?

There has been much conflicting news and comment around house prices in the last few weeks against the backdrop of our politicians behaving badly.  For the man in the street this can make it a very confusing picture, and with Brexit dominating the headlines, it’s all too easy to say “I’m just not going to do anything about moving home right now, until I see what house prices are doing”.

So, as your local property experts, who eat, sleep and breathe Island housing market conditions, what do we see is really going on?

Firstly those headlines:

Halifax House Price Index published 7th March – monthly change +5.8%. Halifax say:

House prices in the three months to February were 2.8% higher than in the same three months a year earlier – up from the 0.8% annual growth rate recorded in January  In the latest quarter (December – February) house prices were 1.8% higher than in the preceding three months (September – November).

Nationwide House Price Index published February – monthly change -0.1%. Nationwide say:

“After almost grinding to a complete halt in January, annual house price growth remained subdued in February, with prices just 0.4% higher than the same time last year. Indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable in recent months, but survey data suggests that sentiment has softened”.

Rightmove House Price Index published February – monthly change +0.7%.  Rightmove say:

“National average price of newly-marketed property rises by 0.7% (+£1,981) this month, consistent with the average 0.6% February uplift in the previous two years. With the average annual rate of growth at only 0.2% (+£714), annual wage growth of 3.4%* is now outstripping asking prices at the fastest rate since 2011, improving buyer affordability”

Trigg & Co (Island Experts) say:

House prices here on the Isle of Wight are stable and have been for some months.

There is no sign of a strong rise in prospect or a likely fall in prices – prices are tracking along in a broadly stable path and we expect that to continue, come hard, soft or medium Brexit.

Prices are simply not gyrating month on month as the published figures would have you believe – and we don’t believe Mark Carney’s ‘project fear’ forecasts that prices could fall by 35% in the event of a no-deal Brexit either.

There is always good demand for well priced, nicely presented family homes.  Prices at the top end of the market are unfortunately often set too high by over ambitious agents anxious to win a vendors approval and their instruction.  Realistic pricing, backed up by solid evidence of process actually achieved and great marketing remain the keys to finding the right buyer.

So if you want to get an up-to-date valuation of your own home and to see what’s happening in your near neighbourhood, give us a call now and book a FREE valuation.