BBC Radio Nottingham Property Market Update
What's happening in the market?
Historical property performance
Property prices are very much as predicted, with prices sliding downwards over the summer, not crashing, but it's going to get a little tougher to sell. If you over price your property, you are wasting your time. Nottinghamshire is not performing great versus the national picture, and the City of Nottingham is suffering from previously over priced city centre flats, with prices very nearly back to the lows of 2009. The question is whether prices will fall further, especially with the latest bad news.
The latest bad news stories from the States, which took defaulting to the wire and their downgrading which was seen as a completely safe haven, has hit the markets hard. The trouble like looting and the violence we've seen, unsettles people, so when you add all of this up, it tends to reduce confidence which is a major factor affecting whether people will buy property or not.
So will this bad news cause the property market to fall further? I've thought long and hard about this. The likelihood is that it won't hit much harder than the expected falls. We're probably talking about another 10% or more for some properties, although good areas with high levels of equity are likely to remain stable. What it will do though is lengthen the time when we'll see property prices recovering. In the last recession it took a good five plus years for this to happen. We are already four years into this recession and rather than see growth next year or even the year beyond as other pundits have predicted, it could be seven years plus and for some areas, even 10 years or more.
So both buyers and sellers need to be cautious unless you have lots of equity to secure the best mortgage rates and are planning to stay in the property you are buying for the next 10-20 years. If you can get 10% off as a buyer and can afford to let your property go and need to move, then consider the offers. Put a time deadline on it if that helps with the decision making.
The likelihood is that with confidence in buying low, we'll see a continued growth in the demand for rental properties. If more stock doesn't appear quite fast, then rents could continue to go up over the next few years, further reducing people's spending power. This may have the longer term benefit of making buying more attractive in the future (currently it's typically cheaper to rent rather than buy).
The one ‘light' at the end of the tunnel for homeowners with mortgages is that interest rates are likely to stay low - the US has said they'll keep them low for the next two years. This will give people a chance to pay off mortgage debt without paying any more money than they are now.
Focus on Beeston
This is a great area of Nottingham with some lovely property stock and a very nice ‘local' feel - quite arty as an area.
Own local history website and community site plus their own newspaper.
Beeston Property Prices (information from FindaProperty)
What's happening in the local market?
|1 Bed Flats £88,891||1 Bed Flats £385|
|2 Bed Flats £102,995||2 Bed Flats £567 |
|1 Bed Houses £95,667 |
|2 Bed Houses £129,098 ||2 Bed Houses £530 |
|3 Bed Houses £164,546 ||3 Bed Houses £608 |
|4 Bed Houses £262,680 ||4 Bed Houses £805 |
|5 Bed Houses £361,514 ||5 Bed Houses £1,517 |
According to the data, tthe local market is not performing as well as last year, with offers lower versus the asking prices and fewer viewings and it's taking around 10 weeks to sell a property. However, conversations with local agents suggest a slightly different picture.
Hometrack Data from July 2011
Sales to Asking Price Ratio %
Viewings to Sales Ratio
Monthly Price Change %
Time to Sell (wks) June
The Beeston agents are reporting this year is a bit better, although it's quiet at the moment, which is to be expected with school holidays. First time buyers seems to be few and far between, but property investors are keen to buy as are cash rich homeowners. They are ideally looking for more new stock to offer keen buyers, so could cope with more properties whether they are a wreck to do up or a great property.
Typically the Edwardian and Victorian properties are always the most popular and these are fetching asking prices. Whatever property you are looking for as a buyer, Beeston has all types of property from farmhouses to new build town houses. There are some good properties in great locations for between £150-200,000.
The only issue on the horizon is those properties/streets that could be affected by the new tram line. This causes them to stick as no-one quite knows what's happening and as a result, buyers are nervous of making offers.Wow Property
Built in approximately 1926 by Sir Albert Ball for his own occupation, Stansted House was built with the best materials and to the most exacting standards and still retains many original period features including stained glass and leaded windows, oak panelling and ornate plasterwork to ceilings and cornices. It backs onto Wollaton Hall and the Golf Club.
Need to be aware of potential golfers firing at your window and the heating bills - surprised I couldn't see the EPC!
Or for a mere £1.4 million, there is aa 7 bedroomed art deco home with an interesting bar - but it may need some work!
It's interesting that the highest price by far recorded for this area is £2.5 million, so both properties look quite high.
There are over 600 properties currently available for £60,000 or less!
A nice property - move in and make your mark! It is located off the main road, with an easy walk to Bulwell station and the tram. You would need to check the traffic noise, but certainly worth a look.
Another good place to look for property bargains is auctions. Pop along to the next property auction by Savills, which is being held on Thursday 1st September. There are 16 properties for sale from around £45,000 to a pair of semis in West Bridgford for £250,000.
There is also an apartment, No. 215 Marco Island on Huntingdon Street in Nottingham NG1 1AR. The mortgagees have received an offer of £57,000 on this property. Any interested parties must submit any higher offers in writing to the selling agent before exchange of contracts takes place.
The above property is a freehold B&B with private living accommodation. Advised turnover is £15,000 per annum with huge growth potential. The agents state that it is an exceptionally well presented Grade II Listed property, in a beautiful village location - East Markham, Newark. Early interest and viewing is highly recommended and would be an ideal couple/husband and wife opportunity. The property also has approximately 0.6 acres of ground.
Listen again to Kate Faulkner on BBC Radio Nottingham! (approx 52 mins in)
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