Some people who have put their homes on the market this year have raised their asking price to attract more buyers. Agents say that the rise in demand and confidence has caused property prices to rise. New figures out show that in eight out of ten regions in England and Wales average asking prices actually went up in February compared to January sales and in some of these areas the price rises was as much as 7%. The only area that saw a drop in house prices was the East and West Midlands. Prices here fell by 0.1% and 1.4% respectively.
Does this signal the end of the property slump or are we being too optimistic. London, the Southeast and East Anglia have every reason to be optimistic, average monthly asking prices here increased 4.2%, 5.2% and 5.3% respective from January to February this year. These statistics area a result of low stock levels along with a strong demand at the moment which is causing prices to be pushed up. When there are smaller numbers of houses on the open market for buyers to compare to prices always go up.
London and the South East always have house prices increasing but the North, Northwest and Yorkshire and Humberside are harder to explain. Their house prices were 5.4%, 3.7% and 6.7% respectively. Agents here feel that the traditional slow period over Christmas explains it along with agents competing for houses on their lists, they set higher valuations which leads to people go for more optimistic prices for their homes. Some see this as a sign of an upturn in the property market whilst others are more cautious. Specific property hot spots will always sell well; prices are determined by what type of property you live in along with the wealth of your surrounding neighbours. Their wealth equates to not being forced to sell and undercut their house price and this has a knock-on effect.
However you may find big variations between properties just a few miles apart. Take for example Bolton on the outskirts of Manchester. The area has been hit with a lot of repossessions and therefore house prices in the region are falling. Just a few miles way is the area of Fulwood, a more upmarket area which allows homeowners here the opportunity to trade up because they have equity in their homes which causes house prices to rise.
Agents are advising vendors to get a move on and sell their property now if they are considering selling their home. Once spring has arrived there will be a lot more properties on the market so buyers have more of a choice. Unless you have an exceptionally pretty garden or you are waiting for your garden to bloom to hide some monstrosity behind the garden wall the warning is not to wait. Those people who have already taken the plunge and put their house on the market at the beginning of the year have already seen success.
There are those who are less optimistic about the housing market. Economists are still claiming that the lack of mortgages and the public sector cuts which will soon be affecting thousands or even millions of people could lead to house prices falling in the next two years. Some predict that house prices could fall by as much as 20%. This does go against expert opinion though; experts are predicting a drop in house prices but only a small one. Facts remain that 40% of sellers fail to find a buyer, in January 121,635 homes came onto the market which was an increase of 35% compared to January 2010. This equates to a overhang of available properties on the market and a push downward in prices. Always remember that people can put their property price but that does not mean that they will actually achieve that price when they sell. Areas such East Anglia and the Southwest have the high property prices also stay on the market longer. Make the most of your house and you will always be in a better position to sell. Do any odd jobs that need doing and you stand a better chance of a sale.