Those of you who regularly read my weekly articles in the Colchester
Property Blog will know I like to keep abreast of the Colchester property
market. Something attracted my attention this week about the local property
market, something I wanted to share with my many readers.
Over the last month,
there appears to have been an anomaly in the local property market, whereby
asking prices in the town have dropped, yet property values have
increased. The average asking price of a Colchester property, according to
Rightmove, fell 1.2% this month yet the average value of a Colchester property rose by 1.5%.
So how does this relate in monetary terms? This anomaly has driven the average asking price of a Colchester property
down slightly to £250,300 whilst the average value is now £270,900.
So why the difference? Technically an ‘asking price’ can be any price that a homeowner wants to place his
or her property on the market for. Unfortunately, many times this is done
without research and can result in overpriced properties that don't sell. As
the Summer months are normally slightly quieter those left on the market
wanting to sell often temper their asking prices in these months to try and
generate interest in their property.
On the other side of the coin, the property ‘value’ is the price that a willing
buyer is prepared to pay and a willing seller is prepared to sell at. Therefore,
in a nutshell, Colchester property values are continuing to rise and those homeowners
in Colchester who have properties on the market, last month on average, reduced
their asking prices .. great news for property owners and buyers alike!
In previous articles, I have spoken about the continued
fundamental shortage of property coming on to the market compared to buyer
demand. That is especially true for homeowners wanting to upgrade to a better
house/better location. I can appreciate Colchester
home owners are reluctant to put their own property on the market speculatively
and wait for the right property to become available and some high demand
locations can suffer from a property stalemate.
Most homeowners don’t want to sell and have
nothing to buy.
But that’s the beauty of the much
maligned English and Welsh house buying process. You can find a purchaser for
your property, then ask them to wait. By agreeing a sale (subject to contract)
before you try to buy sounds concerning to many, but with fewer properties for
sale you need to have a buyer for your property or you will be treated as a
less serious buyer yourself. If you cannot find the right home for you, you can
slow the deal with your purchaser until it comes along. If nothing suitable
does comes along and you lose your buyer then the worst outcome is that you
have to find another purchaser or take your property off the market and stay
put for now, and as long as you mention this at the start they must not commit
to any costs until you have agreed your onward purchase.
However, for the landlord/buy to let investors, these
potential problems are nothing further from the truth. As I write this article,
there are over 250 flats for sale, over 170 terraced houses and 101 semis for
sale in Colchester. Landlord/Buy to let
investors can normally pick up some bargains in the Autumn months, as sellers
who are selling their homes often have a pressing need to sell by this time.
The types of houses a Colchester landlord typically buys,
are not the same types as the homeowners wanting to move to a posher area of
the town as they are attracted by larger semis and detached properties. The
best types of properties for buy to let are the smaller flats, terraced and
semis (not the big detached ones). There are in fact too many of these smaller
properties for sale .. just look at the numbers of properties for sale
(mentioned in the previous paragraph).
If you are a landlord or thinking of become one for the
first time, and you want to read more articles like this about the Colchester
Property Market together with regular postings on what I consider the best buy
to let deals in Colchester, out of the hundreds of properties on the
market, irrespective of which agent is
selling it, then you might like to visit the Colchester Property Blog www.colchesterproperty.blogspot.co.uk/
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