Is Brexit really impacting prices and the Stroud housing market?
Brexit has dominated headline news, blogs, articles, newspapers and social media for many months now but is it directly affecting the housing market in Stroud and the surrounding areas?
The overwhelming issue with Brexit right now is uncertainty about the outcome, this is reflected in the number of properties that are coming to the market as well as customers registering with estate agents and viewing properties.
When you have the BBC reporting that the Bank of England’s governor Mark Carney had warned senior ministers that a chaotic no-deal Brexit could crash houses prices and also that the Royal Institute of Chartered Surveyors had predicted in December 2018 that house prices will fall in the next three months then there is no surprise that confidence for buying and selling houses has been knocked.
At the Bank of England the Monetary Policy Committee (MPC) voted unanimously on February 6th 2019 to maintain the bank rate at 0.75% with mounting fears about the UK leaving the EU without a deal agreed. This move will give potential buyers and sellers a clear message that interest rates will remain low for the short term and borrowing money is achievable.
Estate agents are still selling houses!
Even in a market where you have uncertainty people still have to move. Current vendors and applicants are motivated and will often have a compelling reason to be selling and/or buying. Schooling, job relocation, change in relationship, bigger or smaller property, running costs and the unfortunate situation when an elderly relative has passed away are all key reasons why people have to move.
Vendors currently on the market are motivated sellers and will be doing all they can to get viewings and encourage offers, in fact most motivated sellers would have reduced their price in order to sell over the winter months and motivated buyers respond positively to a price reduction.
The outcome/future still looks positive
There is still a huge amount to be positive about if you live in Stroud and the surrounding areas, houses prices haven’t been affected greatly by this uncertainty and we also need to bear in mind we are at the end of the winter months where we normally see a levelling of house prices.
House prices increased by 2.79% in 2018 in Stroud which is even higher than Bristol. We are seeing an ever greater number of buyers move from Bristol and other major cities to Stroud where Stroud represents better value for money and a welcome change from city living while still very accessible by road and rail for work.
We still have more buyers than sellers and whilst that remains the market will continue to grow and once Brexit is resolved then I’m certain we will a sharp increase in activity levels and agreed sales.
So, whilst we have Brexit rumbling away in the back ground we are likely to see a cautious approach from buyers and sellers but post Brexit (whichever way we go!) it is very likely to be back to business as normal, with lots of buyers and a limited numbers of sellers fighting over limited stock.
Role on 29th March 2019!
Sean Sage, Senior Branch Manager. Stroud.← Back