New Homes Commentary for December 2009
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Brand new homes (unexpectedly) continue to do well in November with prices continuing to move forward. Taylor Wimpey announced they has pretty much run out of stock and put their prices up by up to 10%.
According to David Bexon of Smart New Homes, "many housebuilders are beginning to talk positively about growth in the first half of 2010 with plans to reopen mothballed sites and a renewed thirst for land acquisition. Others are acquiring..stocks of prime land banks".
Their monthly report also statest that just over 88,000 properties were started in 2009, apparently the
lowest level since the 1950s.
Buyers appear to have been 'scared away' from buying city centre flats, so developers have had to reduce prices - some by 50% to sell them and they've stopped building new ones, helping to keep stock lower than demand, which pushes up prices in areas where there is a shortage of supply.
Due to the requirement for high deposits, lenders not keen to loan money to FTB's on new builds and the fact that buyers with a home to sell have some equity built in them, good value family homes are driving the recovery.
For those that can afford new build, there has probably not been a better time to buy. Stocks are low and developers are not rushing to build in 2010 either, so if the economy continues to grow, demand comes back, the fact that new builds offer real energy efficiency savings, suggests that prices could grow well if we recover from the recession.
Want to know more about buying a new build? Need any help? Then call us on 0845 838 1763 or email enquiries@designsonproperty.co.uk
New Homes Data from Smartnewhomes
| Statistic Measure | Feb 09 | Mar 09 | Apr 09 | May 09 | Jun 09 | Jul 09 |
| Average new home price | £227,893 | £220,128 | £220,955 | £215,857 | £214,846 | £212,440 |
| Monthly % change | +2.8% | -3.4% | +0.4% | -2.3% | -0.5% | -1.1% |
| Three monthly change | +0.6% | -2.8% | -0.3% | -5.3% | -2.4% | -3.9% |
| Annual % change | -9.6% | -13.2% | -13.0% | -15.3% | -13.7% | -13.6% |
| Statistic Measure | Aug 09 | Sep 09 | Oct 09 | Nov 09 | Dec 09 |
| Average new home price | £217,058 | £212,124 | £214,909 | £218,160 | £220,537 |
| Monthly % change | +2.2% | -2.3% | +1.3% | +1.5% | +1.1% |
| Three monthly change | +0.6% | -1.3% | +1.2% | +0.5% | +4.0% |
| Annual % change | -10.4% | -10.2% | -7.5% | -3.7% | -2.6% |
For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit
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