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Welcome to my blog

 

Here you can read all my advice, tips and property market knowledge about buying and selling a high value home in the Wisbech Town & Village area

By Alex at Aboda, Aug 6 2018 05:07PM

The housing market – including prices, mortgage approvals and rental prices – are viewed as symbolic of wider economic trends, such as in investor and consumer confidence. House and rental price growth, or lack thereof, is seen by economists, media commentators, and the public as a fundamental economic indicator, and these metrics always get a lot of air time.


Inflation measures are widely seen as the way to understand price changes across the board, but few analyses of house prices changes take this into context. Analysing the change in real house prices – that is, adjusting for inflation – can paint a more accurate picture of how price levels have changed over time. Zero nominal price growth means a fall in real terms if there is positive inflation.


While accounting for inflation softens house price and rental index growth somewhat, it still does not make for pretty reading. Compared to many other goods and services, increasing demand for houses (both for purchase and to rent) and a lack of supply has meant prices have risen quickly.


The below graph, using ONS data, shows house prices in the UK since 1990, both adjusting for inflation (real house prices), and not (nominal). The differences are clear to see.


In January 1990, the average house cost just over £58,000 – but in today’s money, this would have been nearly double this, at over £115,000. Both curves show a similar trajectory, although inflation-adjusted prices show more obvious changes, especially in their decline in the early 1990s, which is partly due to the high inflation rates (of over 7 per cent) during this period.


In the decade to January 2005, nominal house prices grew 172 per cent, whereas this was marginally lower at 131 per cent when inflation is accounted for. While inflation does lower this figure, price rises in the housing market over long periods have been very high, as has been well documented.


Most commentators like to point to house prices at the moment being at record highs. When inflation is taken into account, however, prices are shown to actually have peaked before the financial crisis in late 2007, at nearly £250,000, and have yet to make up the losses they experienced during 2008–2009 almost a decade later. Further, nominal prices suggest a bottoming out of the market in 2009, but adjusting for inflation suggests prices decline a little until 2012, when they started to grow again.


With low inflation recently, the two price trends have tracked each other closely, and price changes that are widely reported can be observed as real, as well as nominal.


Do get in touch should you ever need any advice on the market or your home - I will be happy to help!


By Alex at Aboda, Jul 5 2018 09:16PM

Parents are set to aid over 316,000 house purchases this year, although at £5.7 billion the total value of their lending is set to be down 17% on 2017 according to new research by Legal and General and CEBR.


Over 70% of parents use cash savings, their average contribution set to be £18,000 this year. However, the Bank of Mum and Dad is feeling the squeeze, this is 12% lower than their average contribution in 2017.


While 59% of those under 35 receive financial support from family and friends, the state of the current housing market is seeing support offered across the age spectrum. Two in five purchases aged 35–44, and one in four aged 45–54 benefit from help.


Unsurprisingly the percentage of purchasers receiving help (41%) and the average contribution received (£30,600) is highest across London. However, even in northern regions where average prices are lower, the Bank of Mum and Dad can be expected to contribute a not insignificant £12,000.


By Alex at Aboda, May 23 2018 08:58PM

Since the beginning of 2013 there have been 2.9 million new jobs created.


At the same time, average house prices have increased by 34%, with the two regions currently seeing the strongest growth in job creation (East Midlands and West Midlands) being some of the top performers in rental and house price growth.


So, why does new jobs growth affect house price growth?


A new job can often involve relocation to a new area and create a 'have to move' situation.


This stimulates demand to buy/sell/rent/let a home, and supply and demand affects prices.


Simple really!


If you'd like to discuss the market, or your home - feel free to get in touch! I'll be happy to talk.


Alex


By Alex at Aboda, May 5 2018 10:38PM

May Day – a much coveted long weekend, and a time for dancing, singing and fetes on the village green, but what is the price premium attached to living in such a locality?


To live in a small village across England’s green and pleasant land commands a price premium of close to 24% compared to the average price of a property across England and Wales.


The presence of a village green adds on average, an additional £21,000 to the price of a village property.


Although London is heralded as one of the ‘greenest’ cities in the world, the premium attached to a village with a green compared to a village is equivalent to just over £125,000. Those in the South West can expect to pay close to £44,000 for the privilege of a green.


However, in 40% of regions, the price differential between a village with a green and a village without is less than £10,000, prices across the Midlands and Wales varying very little.


Wherever you live, here’s hoping the sun shined for all your May Day festivities.


By Alex at Aboda, Mar 5 2018 10:05PM

Here's the latest trends in the UK's housing market, with a detailed focus on Wisbech PE13 & PE14.


House prices

UK house prices rose by 5.2% over 2017 according to the UK house price index, taking the average price of a home to £226,756. Within England, strongest growth was recorded in the South West (7.5%) and both the East and West Midlands (6.3%).


Economy

Inflation remained unchanged at 3% in January. The rate was expected to drop slightly from the December figure and a number of measures including food and fuel prices have begun to fall back. These were offset, however, by a rise in price for cultural goods and services.


Transactions

There were 102,610 residential transactions recorded in January across the UK (on a seasonally adjusted basis). While up slightly on the end of 2017, this is on a par with the level recorded in January 2016.


Demand

The National Association of Estate Agents report a large pick up in demand in January compared to the end of last year, although levels remain 14% lower than January 2017. Over a quarter (27%) of all sales in the month were to first time buyers.


Investment

Tenant demand across much of the country edged upwards in the three months to January, while landlord instructions fell back according to the latest survey from the Royal Institute of Chartered Surveyors. Agents are moderately positive about rental price growth over the next three months.


Wisbech PE13 & PE14 Area

Average home values have continued to increase annually by 10%, double the national average of just 5% - and increased by 38% over the last five years - despite transaction levels being 8% down lower compared to the last 12 months. Detached homes continue to be the most type of home sold in the area at 53% of all home types and also show the highest growth in value annually at almost 11% over the last 12 months. Annual house price growth for other home types are 10% for semi-detached homes, 8% for terraced homes and 5.5% for flats in the Wisbech PE13 & PE14 area. The average home value in the area is now approx £180,000 with average values for detached homes now reaching £228,000. The Wisbech area is still an area of high inward migration from other areas of the country, especially at the upper end of the market from £250,000 upwards with 81% of our clients homes being sold to buyers from out of the area, predominantly to buyers from the South East and other counties surrounding the London area.


Our Performance:

Aboda Homes Wisbech sold our clients homes at 102% of marketing price on average over the last 12 months compared to the Wissbech area average of just 96% - gaining our clients 6% more of their homes value!


FULL REPORT HERE (CLICK HERE)


Advice:

If you'd like to have a chat about the market or your home - just let me know and I will be happy to arrange!


Alex


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