Please remember that whilst house prices are predicted to fall over the course of the next 12 months, we live in a bubble and within that bubble there are micro-markets.
There will undoubtedly be a drop in house prices, surely that was evident to all when prices raced ahead over the last couple of years? - it is something that I’ve been harping on about for a long time. The market is unable to continue to support prices that were being achieved. It was entirely unsustainable.
That said, do not panic!!
The long story short, in my opinion, is that if you bought a house between April/May 2020 and July/Aug 2022, you are very likely to have paid top, and certainly, if more recently a touch more than in todays market (Nov 2022) - this was aided by the SDLT holiday (that we didn’t need) and the insanely cheap debt that was on offer.
I do have a couple of fears, firstly for those that have moved with (and I stress) a short-term view (sub 3 years) or that anybody within this timeframe is forced to sell for a variety of reasons - not least because there is always a need for people to move.
Secondly, I worry about those that pushed themselves to borrow at record low rates of interest - will those families still be able to afford the £500,000 loan when their mortgage product matures over the course of the next 12/18 months and they are then looking at rates of c.4.5%+ instead of the 1.5% that they had agreed (or certainly sub 2%)?
Today - as it has been for a couple of months - The market is price sensitive, if you come to market now, please be sensible with your sales strategy - I still see far too many agents listing properties at prices that are unachievable.
The damage that this does for you is huge.
We are seeing more reductions from agents than ever before, why, because the strategy that they deploy is awful - they over value, then beat you down on price. Some of these will have been price reductions in recent weeks as properties that had fallen through from sales agreed earlier in the year, now come back to market in a market that is today, not where it was then.
As a business we are in a fortunate position to touch three very different markets, The ‘Solihull & Shirley’ £250k-£850k, The ‘Knowle & Dorridge’ at £450k-£950k and then our Premium brand that sees the £1m+ across the region.
Each of these markets acts and reacts differently.
I’m going to now pass over to the various teams within DM & Co. starting with my Sales Director, Lisa Smith…
The start of November has seen another hike in interest rates from the Bank of England - this was widely expected and as such the mortgage markets had already priced this in. I suspect this is therefore unlikely to have an impact on mortgage rates today and that higher rates than we have had in recent years will become the norm.
With most looking for a home for on average the next 10 years, the focus must be on affordability and monthly repayments rather than the rate.
It has been great to spend time between all the sales teams this week, and to hear the positive conversations they are having and putting them in touch with Paul to discuss all things mortgages! Always speak to an expert 😊.
The Dorridge team have had a busy week with 7 new properties launching to market, and some more corkers for next week – so make sure you watch Dominic’s ‘Sneak Peeks’ on Monday. As we are nearing Christmas, there is definitely a window now to sell before the festivities start, so if you want to sell before the New Year – it is not too late.
If you are thinking of a move in January, get in touch now so we can get photos done before the Christmas tree goes up!
If you’d like to talk anything property, I’m here for you - just drop me a line - 01564 777314 - Lisa Smith, Sales Director and Branch Manager at Dorridge
Now over to Peter from the Solihull Team…
Where are are weeks going?! We may be heading into winter with the festive period not far off but the housing market shows no signs of slowing down.
Only a few days into November but already a handful of new instructions are being prepared to come to market and a number of sales already agreed.
Our phones are ringing and our diaries are filling, with viewings and valuations.
It's clear that there have been changes in the market over the last few weeks, not unchartered waters by any means but certainly nothing like we have experienced in recent years, especially with yet another (expected!) rise in the Bank of England base rate.
I am fortunate to be one of a team who have all worked within the local property market for many years and are therefore experienced and able to adapt to the changes we are seeing. We are also more than happy to pass this knowledge and advice onto any buyers or sellers (or anyone else!) who needs assistance; it is more crucial than ever to get truthful honest advice in order that the best decisions can be made for your future.
Carrying out property valuations as I do every day I am amazed by the inconsistency of valuations that agents provide to sellers.
Whether you are ready to come to market now or are planning to launch in the new year or just want some advice as to the best way forward please give us a call on 0121 775 0101 or drop us an email and we will be delighted to be able to help. - Peter Faithfull, Solihull Team
Moving now to Gabrielle Argue in Lettings…
If you are actively looking for a home to rent, I cannot stress the importance of speaking to your local agents on a regular basis. In fact, it’s our job to keep you informed on any new upcoming opportunities but you have to be registered with us for the opportunity to view the properties before they go online. If we have your requirements, we will proactively go out & seek a property for you! We are definitely not that agent that puts a property online & waits for the phone to ring!
This week we have been given a fantastic opportunity from a local developer, renown for there high quality, premium homes to rent two of their new builds in Tidbury Green! With one already currently under application we are just about to launch the second 4 bedroom home at £2750 pcm set in a private gated development!
If you are looking for your first investment or building your property portfolio, join The Landlord Club today by clicking here or calling me on 0121 775 0101 (Option 2) - I look forward to hearing from you! - Gabrielle Argue, Head of Lettings
A busy week in Land & New Homes…over to Chris Evans…
Warwick House, set in Solihull town centre, is now very much underway with a stunning show home now ready to view and reservations available with £1,000 reservation fees to secure. Average returns at more than 5% make this an ideal investment opportunity with allocated parking to every apartment… in Solihull town centre! Definitely worth checking out if you’re an investor or first time buyer.
Working on a few new development opportunities this week in Solihull, Marston Green, Earlswood and Digbeth! Sites ranging in size, having potential for a few small apartments up to a larger scale housing development. As always, if you’re interested in sourcing a new development opportunity, whether it be via option or something unconditional and ready to go, get in touch and let us know what you’re looking for, we’re very active in this area! - Chris Evans, Land Manager
And last but not least, Kathy Griffiths - Head of DM & Co. Premium…
It’s been encouraging start to the month with two completions, another sale agreed with a couple more bubbling very close to being tied up!
What’s even more encouraging is that the diary is filling up with appointments, not just viewings but valuations as well.
Obviously with the nights closing in we are having to stop our evening viewing slots now until the Spring time, but we will obviously be as flexible as possible.
I can’t stress enough that we are in need of more stock in B91, B93 and B94. We have so many buyers still looking and in great buying positions, many sitting in rented accommodation.
If you are thinking of selling, but don’t want the fanfare and gossip of nosey neighbours, we happily sell homes on a low profile basis. - in fact, we specialise in it!
Happy to chat and demonstrate the successes that we have had using this strategy together with the many more ways to sell, often each property has its very own unique strategy. Please feel free to get in touch, on 01564 777 314 (Option 4) - or (as son many do) fire Dominic a WhatsApp - 07595 903 811. - Kathy Griffiths, Head of DM & Co. Premium
Thank you for taking the time to read this weeks market update - if you would like to know about anything property related, we would love to hear from, and help you. If you’d like to book a valuation, that is really easily done - click here!
Let’s be honest - selling your home is never going to be easy, there will always be something that doesn’t quite go to plan - what is incredibly important is how your agent reacts to these instances.
If you would like to learn more about how we operate, please get in touch with the Solihull or Dorridge office on 0121 775 0101 or 01564 777 314 respectively.
We look forward to hearing from you.
Kind regards,
Dominic Murphy
Managing Director – DM & Co. Homes
WhatsApp me on 07595 903 811
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