Asking Prices of Aylesbury Property up 9% since December

I had an interesting question from a homeowner in Bedgrove yesterday who asked me the difference between asking prices and values and why it mattered. When it comes to selling property, there must be agreement between the purchaser (buyer) and seller (vendor) for a property sale to take place. The value a buyer applies to a property can massively differ from the value a seller or mortgage company places upon it. The seller, the buyer and the mortgage company must find an agreeable value to assign to a property so the sale can proceed.

In many of my articles about the Aylesbury property market, I talk about values, i.e. what property in Aylesbury actually sells for, but I have not spoken about asking prices for while. Now asking prices are important as they are one of the four key matters a potential buyer will judge your property on (the others being location, bedrooms and type). Price yourself too high and you will put off buyers. So let’s take a look at the Aylesbury numbers.

Over the last 12 months asking prices (i.e. the price advertised in the paper and on Rightmove) in Aylesbury have increased by 15%, taking the average asking price in Aylesbury to £294,200 (up from £255,200 twelve months ago). 

 

Interestingly though, when we look at, say detached and terraced property, a slightly different picture appears. Twelve months ago, the average asking price for a detached house in Aylesbury was £444,500 and today its £493,100 (a rise of 11%); whilst over the same 12 month period, the average asking price of a terraced property was £244,900 a year ago, and today its £278,600 (a rise of 14%). 

My research shows that the supply of property for sale in Aylesbury is beginning to increase. In December 2015, there were 235 on the market in Aylesbury today there are 291 properties on the market (up 24%). This will mean homeowners looking to sell will need to be conscious of how their property compares against others on the Aylesbury property market. The Aylesbury property market still has substantial momentum and sufficient demand remains to provoke more modest asking price rises. This noteworthy increase in supply since Christmas is currently providing more choice for buyers and is tempering asking price rises - and here is the devil in the detail - 9% of the overall 15% annual figure (mentioned in para 3) has appeared since December.

… And here is the second point to make. Asking prices are one thing, but what a property sells for (i.e. value) is a completely different matter. These are the average prices achieved (i.e. what they sold for or the average value) for property in Aylesbury over the last 12 months...

·         Overall Average          £301,500

·         Detached                     £465,300

·         Terraced                      £253,000 

You can quite clearly see, there is a difference between what people are asking for property and what it is selling for. The underlying fundamentals of low interest mortgages and tight supply remain prevalent in the Aylesbury property market. The number one lesson has to be this ... if you want to sell, be realistic with your pricing.

If you are an investor looking to buy check your numbers…I have used averages here but some sectors of the market buck this trend. If you are buying at the lower end of the market you will be facing competition from other investors, first time buyers, buyers moving down market etc. Given this you are more likely to have to pay asking price…but only if it is in line with the market. Many agents are pricing high to attract new business, don’t get caught out. I will happily research the right price for you…just email me the details or property link. ian@mortimersaylesbury.co.uk 

 

Husky on the move!