Confidence is building in the local property market with house prices stable, no significant discounting and average asking price up 3.1%. Smaller homes are the most popular and new instructions are up nearly 7% year on year while the use of online estate agent is rising.
In the second quarter of 2018 interest rates remained on hold, and a strong labour market and wage growth finally picking all contributed to an increasing number of home owners entering the market. A review of 2017 listed prices compared to the price actually achieved shows an average discount of up to 4% for properties sold for less than £1 million, suggesting there is no significant property devaluation occurring.
Online estate agents now represent nearly 8% of all exchanges, an increase of 13% quarter on quarter. Indeed, in the last year, online agents have established a greater footprint across England. The share of the properties they represent has also grown, increasing by more than 30% in most price bands below £1 million.
Smaller homes are the biggest sellers Terraced and semi-detached houses continued to make up the largest proportion of property sales, accounting for over 55% of all exchanges in the second quarter. Both housing types have grown in the last year, driving growth overall. In comparison, flats showed a significant decline in sales volume with the conjecture being that flats now dominate the rental rather than sales market in our major towns and cities.
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