Zoopla have recently reported on two key indicators which could mean that home buyer confidence is improving.
Mortgage approvals on the up
The first item of property news is that the number of mortgage approvals for house purchase in July 2019 was 16.4% higher than in July last year. This buoyancy in mortgage approval rates seems to indicate that uncertainty over Brexit is being put to one side when it comes to home buyer confidence. In total the number of mortgages approved in July 2019 was the highest level for ten years.
Sales prices closely matching asking prices in 2018/19
In the last 12 months, properties sold for an average of 96.3% of their asking price in the England and Wales. There is of course some regional variation. Three areas achieve an average of 100% of their original asking price in the last year: Driffield in Yorkshire; Dronfield in Derbyshire; and Salford in Greater Manchester. At the other end of the scale, the greatest average discount from the original asking price was in Mountain Ash, South Wales, where an average sale price of 91.5% of the asking price was achieved.
Home buyer confidence? The Maison View:
The increase on mortgage approvals is great property news as it could suggest that home buyer confidence is increasing as purchasers put Brexit uncertainty aside and invest in homes. This news is especially welcome in the summer months when the market traditionally slows down. It may also suggest that lenders are open to more borrowers – the coming months will show if this can be maintained. It is always encouraging when the gap between asking price and sale price of a property is minimal. The fact that even the worst performing area still saw a gap of just 8.5% between the two prices on average can be seen as another green shoot. The town of Brandon was the best performing area in Suffolk over the last year with 98.8% of a properties asking price being achieved on average when sold.
Check out more property news here…
