Hello and welcome to the latest edition of my property market update in which I will be reporting on the latest goings on for house prices and activity levels in May.

May has been a busy month with a couple of Bank Holiday weekends, a trade agreement with the US, a cut to the base rate to its lowest point since March 2023, inflation rising to its highest level in just over a year, the highest month for new listings since August 2020, over 100,000 price reductions, the best month for sales agreed since April 2022 and the best May sales results in four years, plus a new record for house prices according to the Land Registry.

This will leave many confused and thinking what on Earth is actually going on with the property market right now and what we can expect going forward.

In this update I am going to be reviewing exactly what has been happening in our local property market, covering SK14. SK15 and SK6 – Hyde, Gee Cross, Romiley, Woodley, Bredbury, Mottram, Stalybridge & beyond.

Let’s get stuck in.

Property Market Metrics

• The number of properties available for sale were up 3.7% vs. May 2024
• The number of new properties listed was up 5.3% v. May 2024.
• The number of sales agreed was up 11.9% vs. May 2024

What that means…

May was a busy month and the house market is certainly moving. However, due to the increased level of supply, it is only the sellers who are pricing competitively who are attracting interest and attracting a buyer.

Therefore it is paramount that sellers price correctly from the outset, but if they do test the market and don’t find a buyer, they need to act quick in realigning their asking price to show buyers they are realistic about moving, otherwise buyers have plenty more choice available for them to shop around and find better value for money.

Property Market Insights

• The number of price reductions was up 0.6% vs. May 2024
• The number of properties withdrawn from the market was down 20% vs. May 2024
• The number of sales that fell through was up 10.8% vs. May 2024

What that means…

Sellers are reducing their asking prices to entice buyers and showing a commitment to selling as opposed to just withdrawing with the number of properties exiting the market down both month-on-month and year-on-year.

Homes which need a reduction in price during marketing can take over two months longer to find a buyer and are also more likely to have a sale fall-through.

Collapsed sales are higher than the May average over the past half a dozen years and if these properties return to market it will further exacerbate the already high stock levels.

All of the above combined would help to explain why stock levels have continued to rise at such a considerable rate compared to previous years.

Property Market Pricing

• New listing prices were up 4.4% vs. May 2024
• Sale agreed prices were up 4.7% vs. May 2024
• The price per square foot was up 6.2% vs. May 2024

What that means…

100,000+ price reductions (nationally) in May would have you thinking the property market is performing poorly following the stamp duty deadline and all the economic uncertainty, but this couldn’t be further from the truth. May saw the best sales month since March 2022 and the best May for sales in four years so there is clearly demand in the market from buyers.

If you would more information, or just some general advice on buying or selling your home then please get in touch.

Source: Opening The Gates