Post Brexit Market Report
In the last two and a half weeks we have been asked the same question by a number of people including buyers, sellers, surveyors, solicitors, other estate agents, friends & family...
What is the property market doing since the Brexit vote?
Here is our honest, unbiased and non political view on what has happened since the referendum, is happening now and what the future may hold.
On the Friday morning (24th June) after the UK voted, we saw a bit of a knee jerk reaction, with 2 cancelled viewings, 1 cancelled valuation and 1 buyer withdrawing from their purchase, all citing 'Brexit concerns' as their reason. This all happened before 10am! I have to say at this point, we feared the worse.
We have since had a seller withdraw from their sale citing concerns relating to Brexit.
So, in 2 weeks on, we have lost 2 sales, 2 viewings and 1 potential seller as a direct result of the EU referendum vote. Clearly, this is not good news, however, to put this into some perspective, in May 3 sales fell through for differing reasons but none citing Brexit, and in January we lost 4 sales, also citing differing reasons. Our worst month came last year when in in August 2015 we lost 5 sales!
Considering we currently have over 100 sales proceeding, this represents less than a 2% loss in sales. If this number remains the same for until the 23rd of July, it would be our best 'month' of the year so far!
We are very proud of our retention of property sales and continually achieve over 95% of sales reaching completion. (5% fall through rate) The following article from July last year suggests a much higher average...http://www.propertywire.com/news/europe/uk-home-sales-failures-2015071010736.html
Where are we today?
There is always trepidation among buyers & sellers when such a huge event occurs and we are sure that some will be 'sitting on their hands' or 'waiting to see what happens'.
After the initial reaction to Brexit, it seems now that some of the dust has settled and we have seen a return to the norm. We are still making plenty of viewings, numerous sales and enquiry levels are equal to what we have seen in the months preceding the referendum.
This weekend alone, we conducted 6 open days all of which have received multiple offers. We have not seen any changes in sale prices or values, nor do we expect to in the short term.
So, what does the future hold?
I guess that is the million dollar question! There is little doubt we will be facing many challenges in the coming months and years. What we can say is that the local property market is well placed to deal with what may be thrown at it. Property sales and prices are at the mercy of demand. We are fortunate to operate in an area where property is in huge demand. This demand is driven by a number of factors including excellent schooling, superb transport links, fantastic parks and open spaces, value for money, closeness to central London plus, let's not forget, we are in a nice place to live! In addition, over the last few years we have seen a remarkable increase in the number of buyers from outside the area such as Wimbledon, Putney, Balham, Clapham as well as other parts of London and further afield, discovering the benefits of living in our part of the world. This coupled with our local clients' moving to larger and smaller properties, provides a variety of motivated buyers' to choose from.
In summary, In the immediate aftermath of the referendum we are not seeing much change and at Paul Graham it is very much business as usual.
If you are considering a move now or in the future, we would be delighted to hear from you.
?
What is the property market doing since the Brexit vote?
Here is our honest, unbiased and non political view on what has happened since the referendum, is happening now and what the future may hold.
On the Friday morning (24th June) after the UK voted, we saw a bit of a knee jerk reaction, with 2 cancelled viewings, 1 cancelled valuation and 1 buyer withdrawing from their purchase, all citing 'Brexit concerns' as their reason. This all happened before 10am! I have to say at this point, we feared the worse.
We have since had a seller withdraw from their sale citing concerns relating to Brexit.
So, in 2 weeks on, we have lost 2 sales, 2 viewings and 1 potential seller as a direct result of the EU referendum vote. Clearly, this is not good news, however, to put this into some perspective, in May 3 sales fell through for differing reasons but none citing Brexit, and in January we lost 4 sales, also citing differing reasons. Our worst month came last year when in in August 2015 we lost 5 sales!
Considering we currently have over 100 sales proceeding, this represents less than a 2% loss in sales. If this number remains the same for until the 23rd of July, it would be our best 'month' of the year so far!
We are very proud of our retention of property sales and continually achieve over 95% of sales reaching completion. (5% fall through rate) The following article from July last year suggests a much higher average...http://www.propertywire.com/news/europe/uk-home-sales-failures-2015071010736.html
Where are we today?
There is always trepidation among buyers & sellers when such a huge event occurs and we are sure that some will be 'sitting on their hands' or 'waiting to see what happens'.
After the initial reaction to Brexit, it seems now that some of the dust has settled and we have seen a return to the norm. We are still making plenty of viewings, numerous sales and enquiry levels are equal to what we have seen in the months preceding the referendum.
This weekend alone, we conducted 6 open days all of which have received multiple offers. We have not seen any changes in sale prices or values, nor do we expect to in the short term.
So, what does the future hold?
I guess that is the million dollar question! There is little doubt we will be facing many challenges in the coming months and years. What we can say is that the local property market is well placed to deal with what may be thrown at it. Property sales and prices are at the mercy of demand. We are fortunate to operate in an area where property is in huge demand. This demand is driven by a number of factors including excellent schooling, superb transport links, fantastic parks and open spaces, value for money, closeness to central London plus, let's not forget, we are in a nice place to live! In addition, over the last few years we have seen a remarkable increase in the number of buyers from outside the area such as Wimbledon, Putney, Balham, Clapham as well as other parts of London and further afield, discovering the benefits of living in our part of the world. This coupled with our local clients' moving to larger and smaller properties, provides a variety of motivated buyers' to choose from.
In summary, In the immediate aftermath of the referendum we are not seeing much change and at Paul Graham it is very much business as usual.
If you are considering a move now or in the future, we would be delighted to hear from you.
?
11/07/16
Post Brexit Market Report
by Paul Graham Estate Agents
