The average asking price of property in Rotherham increased by 2.5% compared to a year ago, with particularly good demand from landlords and home-movers in the first few months of the year. This amounts to a £3,292 increase, taking the current average asking price to £132,839, compared with £129,547 this time last year.
The rise in asking prices is being aggravated by buyers jumping into action looking to benefit from potential stamp duty savings (especially first-time buyers) or beat impending mortgage interest rate rises later in 2018. Of the numerous Rotherham buyers starting their property hunting in the usually active spring market this year, many face paying even more than ever for the property of their dreams, and as I mentioned a few weeks ago, there are less properties for sale in Rotherham compared to 12 months ago.
Looking at the different sectors of the Rotherham property market, splitting it down into property types, one can see what is happening to each sector of the market with regard to their average asking prices now compared to a year ago. Firstly, let’s examine the price people are asking for:
Interestingly, when one looks at the percentages, the most upward average asking price pressure is in the detached property type sector.
Does this mean the value of Rotherham property has increased?
Now, I must stress this growth in the asking prices of Rotherham property doesn’t mean the value of Rotherham property is going up by the same amount… nothing could be further from the truth.
Only time will tell if the current levels of Rotherham asking prices is a catch-up abnormality after a couple of months of restrained asking price rises in the first few months of 2018, or whether it is an initial sign that we are in for a better 2018 property market than all of us were expecting at the start of the year?
I believe these asking prices must be viewed with a pinch of salt, as it will be fascinating to see whether Rotherham properties actually sell at these higher asking prices. Just because house sellers (be they owner-occupiers or landlords liquidating their assets) are asking for more money it doesn’t mean buyers will be enthusiastic to part with their hard earned cash. Like my parents used to say to me all those years ago, “You can ask … but you might not get”.
Also, Rotherham homeowners and landlords wanting to sell their property need to be aware of progressively strained buyer mortgage affordability and the more those sellers increase asking prices, the more buyers will hit their maximum on the amount they are able borrow on a mortgage.
However, those Rotherham buyers who need a mortgage (be they owner-occupier or landlord), will paradoxically benefit from lower mortgage payments before interest rates rise… perhaps another reason for the uplift in the number first time buyers and landlords buying? Only time will tell!