Is it a buyers’ or sellers’ market?
Are you considering moving home during the next 6 to 12 months?
You may be a landlord deciding whether to grow your portfolio or sell off a few properties. Or you're a first-time buyer wondering if now is the right time to move.
Understanding whether the current property market favours buyers or sellers is key to making the right call. If you follow my regular property updates, you'll know one of the most reliable ways to assess the market is by looking at the percentage of homes marked as "Sold STC" or "Under Offer" compared to the total number of properties on the market.
Let's show that in practice. In this example, if there are 400 properties on the market in a location, and say 300 properties are for sale, fully available to buy, and the remaining 100 are under offer or sold. 100 as a percentage of 400 gives us a sales percentage of 25%. It is this percentage that strongly indicates the local property market temperature and who holds the upper hand, i.e., buyers or sellers (or somewhere between).
This percentage figure acts as a barometer for market conditions and can be analysed using this table:
· Extreme Buyers' Market (0%-20%)
· Buyers' Market (21%-29%)
· Balanced Market (30%-40%)
· Sellers' Market (41%-49%)
· Hot Sellers' Market (50%-59%)
· Extreme Sellers' Market (60%+)
Are you considering moving home during the next 6 to 12 months?
You may be a landlord deciding whether to grow your portfolio or sell off a few properties. Or you're a first-time buyer wondering if now is the right time to move.
Understanding whether the current property market favours buyers or sellers is key to making the right call. If you follow my regular property updates, you'll know one of the most reliable ways to assess the market is by looking at the percentage of homes marked as "Sold STC" or "Under Offer" compared to the total number of properties on the market.
Let's show that in practice. In this example, if there are 400 properties on the market in a location, and say 300 properties are for sale, fully available to buy, and the remaining 100 are under offer or sold. 100 as a percentage of 400 gives us a sales percentage of 25%. It is this percentage that strongly indicates the local property market temperature and who holds the upper hand, i.e., buyers or sellers (or somewhere between).
This percentage figure acts as a barometer for market conditions and can be analysed using this table:
· Extreme Buyers' Market (0%-20%)
· Buyers' Market (21%-29%)
· Balanced Market (30%-40%)
· Sellers' Market (41%-49%)
· Hot Sellers' Market (50%-59%)
· Extreme Sellers' Market (60%+)
