First of all we have to make a reference to the weather. July was a hot sunny month. Internet activity and viewing numbers were low as people shunned house hunting, opting to choose time with family and friends instead. The hot long spells of weather have been a rare sight since 2003 - people were really making the most of it. Could August have been a wait and see month?
I have spoken with agents across the UK and many have reported a difficult month with one agent selling just 2 homes. One agent reported slumps of almost 30% whilst another said they were booming! Nationwide Building Society has reported the biggest slump in house prices in 6 years. Rightmove are reporting that in the Wales alone, they have dropped by 0.1%.
In Cardiff 174 properties reduced their asking price in August. The average reduction was just over 6%. Are house prices dropping or were the estate agents valuations over optimistic? Here is what really happened in our City. All the data is sourced from Rightmove and Zoopla.
How many houses actually sold in August in CF5
In August 2018 79 properties sold (SSTC). This is 5 less than what sold in July 2018 and 15 less than the previous month. August has not surprised me at all as historically it is normally a quieter month due to the school holidays. Interest rates increased to 0.75% their highest level since 2009 and Cardiff being a university City, many of our residents have been away enjoying holidays. There have been many factors affecting the slump in August.
Up to £125,000 21 properties sold (up by 8)
£125,001 - £250,000 46 properties sold (no change)
£250,001 - £500,000 19 properties sold (down by 8)
Above £500,000 3 Properties sold (no change)
What happened to higher end sales?
Back in June there was not much change to this price bracket of £250,000 and above with sales being on par with July. In August it has dropped by a surprising 29%. Expectations are that this price will see a noticeable difference now the school holidays are over. It needs to.
What happened to the lower end of the market?
We are pleased to see the lower end of the market increase in sales. Sales in this catergory increased by a fantastic 11%. When you closely look at what is selling, most of these actually sold to first time buyers who have returned to the market and we need these lower end properties to sell for the higher priced properties to find their buyers.
What type of property sold?
Over half of the Cardiff sales (61%) were terrace homes. This number is steady and back in July terraced properties accounted for 57% of all sales. Are the people of Cardiff falling back in love with the older period style homes. The second most popular home this month was flats with 97 sales.
Sales by house type (CF5)
Detached 8 (down by 1)
Semi-Detached 26 (down by 3)
Terraced 34 (down by 4)
Flats 12 (up by 5)
Sales by area
CF5 1 27 (17 terraced)
CF5 2 5 (9 semi-detached)
CF5 3 13 (6 flats)
CF5 4 17 (8 semi-detached)
CF5 5 6 (3 terraced)
CF5 6 8 (5 detached)
28 different estate agents were involved in the selling of these homes across the CF5 postcodes and we are delighted to have been part of these. Our clients homes all found buyers within 4 weeks of marketing and online estate agents only accounted for two of the sales in August. If you would like to keep up to date with happenings in the Cardiff housing market the keep an eye on our facebook and website pages or call me on 029 2057 5631. At Olivia Louise we are here to help.