Re-Mortgaging is where you switch the mortgage on your home to another lender or negotiate a better deal with your existing one. It effectively means replacing your current mortgage contract with a new one.
There are many reasons why you may wish to remortgage, but they usually fall into one of three categories. No matter what your reason may be though, it’s important to speak to an adviser beforehand.
Home sizes are a vital gauge of the character of housing stock in a locality. The chart here might surprise you a bit as lots of people think that everyone lives in the same kind of home as them but there are large minorities of people living different types of home.
An analysis of monthly changes in house prices should always be taken with a pinch of salt, particularly when looking at a very local area. To try to strip out some of the nuances, we’ve displayed flats and houses separately but you’ll see the usual amount of volatility.
The quarterly sales chart for the local area provides a detailed overview on how the market has performed in the last couple of years. Here we show the total number of property transactions every quarter. This is a useful way to look at how market liquidity has changed since the previous year, whilst accounting for seasonality.
If you venture online, pick up a paper, or watch the news, any mention of the property market in the UK comes with a measure of doom and gloom these days. However, interest rates are still very low and are not likely to rocket up, so it’s not a remotely dangerous time to buy or sell a home. Here are our three reasons homeowners should be optimistic about the prospects for the property market in Stockport.
The first and main reason to be positive is illustrated very clearly in the chart above. Long term house price growth in the area has been strong, with the average annual rate of growth since 2000 sitting at an admirable 10.2 per cent. The broad base of the market and the solid fundamentals underpinning it mean we expect this to continue in the medium and long term.
The next reason to be positive is the abundance of liquidity in the market. This means that lots of people are buying and selling and the market isn’t in danger of stagnation. In the second quarter of 2017 (the latest full quarter for which data is available), there were 382 sales. This is 153 per cent higher than the same quarter just eight years ago.
Rental returns: Despite former Chancellor George Osborne’s best attempts to slow down the buy-to-let market, the demand for rental property looks like it will increase. There will be plenty of chances for canny landlords thinking about purchasing a buy-to-let property or expanding their portfolio. The current local median monthly rent is £581, which means you could enjoy yields of 5.5 per cent.
With demand for homes increasing, vendors are in a healthy position where they can realistically hope to achieve the asking price, or higher, for their property. When you compare lack of availability to high demand, it seems even more plausible that you will be happy with the final sale price.
The third reason to be positive is the amount of sanity in the national market, which has come about because of more grown-up mortgage regulation. The meteoric rise in prices in the area pre-2008 led to price ‘froth’ building up in the market, which ultimately caused the 2008 crash. While price growth since 2008 has been less rapid, it is far more sustainable and will save us from another crash. Why don’t you pop into our office for more info?
Commuting patterns are a significant barometer of the profile of people in a property market. For example in areas where most people travel to work by car, there tend to be more even property price distributions across the local market. On the other hand when people mostly travel by train or underground, there are big price hot spots around the stations.
Has someone who has just sold their home ever told you about the ‘golden rules’ you should abide by to get a quick sale? Perhaps you have heard comments like, ‘catch the property season’, ‘spend money to make money’ and ‘price high and accept low’. Unfortunately, achieving the optimum sale requires you to navigate highly changeable market conditions.
The local market in Stockport changes a lot year-on-year. As the chart above shows, the average price of properties on the market fluctuates a lot more than you might think. But unweighted overall average prices only tell part of the story – sales rates are the thermometer we use to measure the temperature of the market.
You have to sell during the ‘property season’: There is no doubt that some seasons can be slightly busier than others, but there are no definitive periods that can be classed as a bad time to sell your property. People search for homes throughout the whole year because of reasons individual to them, not because of the weather.
DIY: Adding extensions to your home can increase the overall value of the property. However, that doesn’t mean you should always do this before you list it on the market. Often, home hunters will want to do their own renovations to properties and may have different tastes to yours.
Don’t accept the first offer: The saying goes, ‘don’t look for a quick sell by accepting the first offer because a better one will come along’. The simple truth is: if you are offered a price that meets the value, you should sell. In fact, estate agents often show properties to their best clients first, so by turning down a good offer from an early buyer, you may be opening yourself up to issues down the line with other buyers who aren’t as serious.
So what are active buyers looking for right now? We all enjoy some peace and quiet, no one is denying that. But the idea that property in close proximity to public transport hubs like train stations are harder to sell just isn’t true. In fact, if you can hear the trains from your home, that means you are located nearby a station – and properties close to a station are always in high demand.
There are no hard-and-fast rules to how to sell your property – the tone of the market is ever changing and its important you work with a good local agent with their finger on the pulse. If you have any more questions regarding property in Stockport or are thinking of selling your home and buying a new one, don’t hesitate to get in touch on 0161 474 8660.
Over the last twelve months we’ve seen pretty strong performance in the local market. We wanted to see how different property types have performed, so we indexed the values at the start of the period. Property data updates quite slowly, so we’ve estimated the last 3 months.
This chart nicely reveals how sales levels have played out over the last seven months in our area. We’re looking at a relatively tight area over relatively short periods of time, so you don’t get the nice smooth patterns you’d see using annualised analyses or at higher levels of geography. The patterns however, are very revealing.