One of the key factors of the health of the Herne Hill property market is the number of properties for sale at any one time. The issue with housing is that when demand goes up, unlike with a chocolate bar factory, who can add a couple of hours overtime to increase supply/production to satisfy demand, it takes a good 18 months to two years from planning permission to someone moving into a home. I have talked at length (and proved) in previous articles that we are still not building enough homes in the long term in the Herne Hill area.. yet for the short term, a good indicator is the number of properties for sale and how long they have been on the market.
How long a property has been on the market is important as a guide to how the property market is performing – potential buyers can always find this information on the Rightmove and Zoopla listings (if you don’t know where – drop me an email or message and I can let you know).
So, let’s have a look at what is happening in Herne Hill, both in terms of the number of properties for sale and how long they have been on the market compared to a year ago, then discuss what that means for the current state of play of the Herne Hill property market. So to start, let’s look at the number of properties for sale in Herne Hill compared to a year ago.
Interestingly, you can see there has been a proportional decrease of 37% in apartments on the market in Herne Hill and a 57% reduction in semi-detached property .. overall in the last year there are 42% less properties on the market in Herne Hill, compared to a year ago. Now, let’s look how long they have been on the market….
Interesting to see that the biggest jump in the number of days on the market is semi-detached houses, from 108 days to 246 days .. demand and supply working again. Also, the length of time an average Herne Hill property has been on the market has increased by 37% in the last year.
So what does this all mean for Herne Hill Buy To let landlords and Herne Hill homeowners looking to buy and sell? Well, if you are thinking of selling, as the number of properties on the market has decreased and the length of time Herne Hill properties are on the market has increased – you have to be mindful that realistic pricing is the key to get the property sold. If you are a buyer, that means you find yourself in a better position to negotiate a good deal on your Herne Hill property purchase.
There is an argument to suggest that property buyers see excessive days on the market as an indication that the seller is becoming desperate to sell because the property hasn’t sold. Buyers are also mindful to believe that there might be something wrong with the home, a defect that caused other buyers to pass it up. This can concern them when they view the property – if they view it at all, as that possible and perhaps made-up defect is on their minds, even if it is subconsciously.