Market Review Half Year Report 2013
www.corumproperty.co.uk
10 years ago we brought you a focused and refreshing approach to estate agency West End
Sally Cormack 0141 357 1888 sally.cormack @corumproperty.co.uk
Newton Mearns
Marc Leslie 0141 639 5888 m.leslie @corumproperty.co.uk
Bearsden
Siobhan Cox 0141 942 5888 s.cox @corumproperty.co.uk
Ayr
Bruce Patterson 01292 880888 b.patterson @corumproperty.co.uk
West End
James Lang 0141 357 1888 j.lang @corumproperty.co.uk
Shawlands
Lesley Sim 0141 636 7588 lesley.sim @corumproperty.co.uk
Bearsden
James Durward 0141 942 5888 j.durward @corumproperty.co.uk
Troon
Colin McCrossin 01292 310010 c.mccrossin @corumproperty.co.uk
You kindly embraced us and between us we have achieved ÂŁ2.8 billion in property sales, including 80 homes at ÂŁ1 million or more. Meet the most experienced and successful team in the business. Whether you are buying or selling, let Corum demonstrate how our unrivalled track record in prestige property sales can help you make your move and attain the best results. In light of a recovering and increasingly progressive market discover how your local area is performing in our featured pages. If we can be of assistance contact us today and let us provide the solution to your specific buying or selling requirements.
West End
John Davidson 0141 357 1888 j.davidson @corumproperty.co.uk
Shawlands
Ewan Blair 0141 636 7588 ewan.blair @corumproperty.co.uk
Bridge of Weir
Stephanie Morton 01505 691 400 stephanie.morton @corumproperty.co.uk
Troon
Colette MacCallum 01292 310010 troon @corumproperty.co.uk
Newton Mearns
Mark Jamieson 0141 639 5888 m.jamieson @corumproperty.co.uk
Shawlands
Lynsey Smith 0141 636 7588 lynsey.smith @corumproperty.co.uk
Bridge of Weir
Murray Houston 01505 691 400 m.houston @corumproperty.co.uk
Largs
Lesley McClure 01475 675001 l.mcclure @corumproperty.co.uk
Newton Mearns
Joyce Watt 0141 639 5888 j.watt @corumproperty.co.uk
Shawlands
Alastair Reid 0141 636 7588 alastair.reid @corumproperty.co.uk
Ayr
Lynda Shirra 01292 880888 l.shirra @corumproperty.co.uk
Largs
Neil Bremner 01475 675001 n.bremner @corumproperty.co.uk
Contents Managing Partner Overview .............................................................1 Bearsden
.............................................................2
West End
.............................................................3
Newton Mearns
.............................................................4
Shawlands
.............................................................5
Ayr
.............................................................6
Bridge of Weir
.............................................................7
Largs
.............................................................8
Troon
.............................................................9
Half year report 2013
How is the market? Probably the most frequent question anyone associated with property is asked on an ongoing basis - the answer? In a positive transition at the present time, with sales volumes up around 14% year on year, with our largest gains being in excess of 25% in some areas. Selling times in popular suburbs have almost halved and a healthy incidence of Closing Dates have been in evidence to help ‘firm up’ prices. Demand levels are increased across the board as an emerging confidence becomes more evident in a genuine and urgent desire to look at each new property coming to market. What about values? A little to early to say where we are on values, however as quick as many ‘analysts’ were to predict Armageddon, there have some already providing us with their wisdom on rising values over the next year and beyond - our own view? House prices are both indirectly and directly influenced by earnings, therefore in light of little movement in wages, it is unlikely that we will see much gain in the short term, although medium to long-term prospects now appear very positive. Perhaps the most influential driver in House Prices is supply and demand and given the paucity of new build property over the past 5 years, we could yet find that if the heavy suppression of demand witnessed in the same period now results in a ‘cork out of the bottle’ scenario as confidence and consumption become more prolific again, then values may accumulate positively. Is this all sustainable? In some ways the most difficult question of all given we are still part of a relatively volatile ‘Global Market’ - our opinion? We commented previously that there had been tentative signs that the Governments Funding For Lending Scheme (FLS) had been impacting positively on market conditions, I believe it’s now fair to say that there is copious evidence that this is bearing fruit, with increased volume lending,
John Kelly Managing Partner Newton Mearns 0141 639 5888
a wider range of products for all buyer categories, including First Time Buyers and perhaps most importantly an increased appetite from lenders and their willingness to compete on rates. This scheme will not last for ever but our view is that it’s legacy will be provide sufficient, self-perpetuating momentum and the new found confidence it brings to drive our the property market onwards for the future. With a raft of daily positive data on employment, consumer confidence, upgraded growth forecasts and on our economy in general there is a real sense of a growing positive sentiment and its how many people feel that manifest’s itself in how they act, particularly with major, discretionary purchases. House prices now appear to be stable, if not ‘firming up’ as we write, and with prospects of good medium to long term appreciation in values aligned to Fixed Mortgage Rates from 2 - 10 years at the most affordable we are ever likely to see in our lifetime, we believe that if there was ever a time for ‘Carpe Diem’ - its now. Our overview We can spend our time endlessly reviewing facts, opinion and confidence levels and at the end of the day all that leads us to is a speculative viewpoint, albeit a well researched viewpoint. We endeavor to be consultative, advisory and ultimately enact what we believe to be in your best interests at all times, given the prevalent personal and market circumstance, but what it all boils down to is do you want to move? If you do then our all our data and statistics support the view that you can - effectively it’s ‘safe to get back in the water’ - in fact it’s positively pleasant once again. For more information on your local area please see our following branch reports and if you need anything just call or e-mail us - remember we are here to help you move - it’s our sole focus and specialty.
1
Bearsden
James Durward Bearsden 0141 942 5888 j.durward @corumproperty.co.uk
Half year report 2013 It’s hard to believe that almost five years on from the banking crisis and perceived financial Armageddon, the market in the suburbs of Bearsden & Milngavie has regained full momentum. Those considering a move may find this to be the perfect time to take advantage of current prevailing market conditions. Our statistics, exhibited as evidence below, confirm our perception that the market is regaining confidence and continues to show positive signs of a more robust, and sustained, recovery. 120 property sales year to date (2013), with a cumulative value of some £45m. Year-on-year increase in sales volume of 20% in comparison to that of 2012 and an increase in sale volume of 8% in comparison to 2007 - ‘height of market’. Circa 18% Year on year increase in average sales price. Four property sales in excess of £1m.
Corum Bearsden office 4 Canniesburn Toll Bearsden G61 2QU Tel: 0141 942 5888 www.corumproperty.co.uk 2 *(Source: Rightmove)
Approximately 50% of properties sold achieved a sales price at the Home Report valuation or above. 25% of 2013 sales were achieved at closing date. 514 registered buyers currently seeking to secure their perfect home Our people are key to our success and with a combined 90 years industry experience, led by founding partner James Durward, they are without doubt the most knowledgeable in the area and best placed to advise and assist you in all aspects relating to the successful sale and/or purchase of your perfect home. Having already helped 240 clients to successfully move this year, the Corum team truly understand what it takes to make that seamless move as stress free as possible. In conclusion, it’s worthy of note that with demand and sales volumes akin to those at the peak of the market, now may be the opportune time for you, whether buyer or seller, to ‘test the water’. You may even find that exponentially the ‘cost to change’, especially if moving upstream, offers the opportunity for financial reward. Why not make your move to that aspirational home your reality - your time is now!
West End
James Lang West End 0141 357 1888 j.lang @corumproperty.co.uk
Half year report 2013 At the midpoint of the year we have seen further improvements in buyer confidence, the majority of properties are selling at closing dates within an average period of 5 weeks and often achieving in excess of Home Report valuation. We have built a strong register of clients who are looking to buy homes in “chain free� situations. Often we find ourselves selling properties within a few days of instruction. The growing band of local NHS professionals are often the resultative buyers. We have observed that a number of doctors and other medical professionals are migrating into the area due to the increased availability of roles within the Greater Glasgow area. A significant number of these clients are relocating back to Glasgow after working in London for a number of years. This migration is driven by a number of factors especially the rocketing costs of living in London versus the attractiveness of property prices and lifestyle offered in Glasgow, the excellence of education available in the city and ease of commuting to city centre and outlying hospitals.
Corum West End office 82 Hyndland Road Glasgow G12 9UT Tel: 0141 357 1888 www.corumproperty.co.uk
Due to the large increases in value in London in recent years, many clients find themselves buying with cash in Glasgow or borrowing with a very small loan to value mortgage. The continued low cost of mortgages is still attracting clients away from the rental sector. Looking forward we have a great platform to build on for the rest of the year. Available stock is on the increase with a number of landlords now looking to sell their properties due to the stabilising market within Scotland. We have also experienced an increase in clients selling up in Glasgow in order to move to Edinburgh. After commuting for 18 months or more they are now in a position to realise equity from the sale of their home. These are mainly clients working within the financial services sector. The West End office has been pivotal in the implementation of high definition photographs and movies to a wide proportion of stock bringing about an increase in the second quarter viewing numbers along with further penetration into the international market and clients south of the border looking to relocate. The HD movies give clients the highest possible digital property experience. Corum are market leaders in this field and we plan to role this out to the majority of clients for the rest of the year. In short we have a much improved and consistent marketplace and 2013 is a great time to sell, especially if your plans have been on hold from the previous few years.
3
Newton Mearns
Mark Jamieson Newton Mearns 0141 639 5888 m.jamieson @corumproperty.co.uk
Half year report 2013 The outlook for the property market in East Renfrewshire continues to be extremely bright and optimistic. A 46% increase in transactional sales across the board during quarter two, demonstrate a tangible and material improvement in the property market. Banks and Building Societies publically advertising that they are open for business, increase mortgage availability, improved lending rates and ultimately a tangible improvement in consumer confidence have given the property market a significant boost. An improvement in selling times along with an increased level of closing dates and premiums over the asking price, continue to contribute to a more buoyant and productive property market for the industry. Sales of modern apartments over the spring indicating an improvement in sales of larger properties, as down sizers return to the market place. This clearly also indicates an improvement of sales for properties up to ÂŁ600,000. Beyond that level continues to be somewhat sluggish, although there are now some viewers returning to the market place.
Corum Newton Mearns office 116 Ayr Road Newton Mearns G77 6EG Tel: 0141 639 5888 www.corumproperty.co.uk 4
Predictably the market place for three and four bedroom family homes between ÂŁ250,000 and ÂŁ500,000, within the key pockets of East Renfrewshire, continue to be in most demand. Therefore the future of the market place looks bright, optimistic and the wheels are turning.
Shawlands
Ewan Blair Shawlands 0141 636 7588 ewan.blair @corumproperty.co.uk
Half year report 2013 Taking time to reflect on the first half of 2013 has made for some very positive reading in our Shawlands office. Quarter two is traditionally a popular time to sell and we have been busy helping a number of clients move quickly and efficiently in the run up to our summer period. The middle market between £250,000 and £500,000 continues to prove fruitful with many qualified buyers and enquiry levels at this price point being particularly encouraging. All properties with a front and back door continue to be very popular be it a terraced, conversion, bungalow, semi-detached or detached home. Both stamp duty thresholds at £250,000 and £500,000 provide their own challenges although our mentality remains positive in that they have always existed and all new listings are priced accordingly.
Corum Shawlands office 247 Kilmarnock Road Shawlands G41 3JA
Larger style town flats and tenements are in high demand if well presented. The first/second time buyer now demands quality and their potential purchase must be in ‘walk in condition’ otherwise they will negotiate heavily. Suitable mortgage finance can still be a struggle for buyers at this level of the market and therefore any client considering selling should make sure they minimise any negotiating tools prior to proceeding. The upper market from £500,000/£600,000 plus is showing more positive activity levels with the majority of buyers arriving from out with the area. Both Newlands and Pollokshields offer some outstanding homes rich in period detailing and now represent very good value for money relative to more suburban areas. Closing date scenarios are now commonplace as buyer confidence increases and more attractive mortgage deals become available. We have witnessed a period of consistency across most price bandings for approximately 18 months and would quite confidently state there has not been a better time to consider selling in the last 5 years. Should you be considering a move or merely wish to explore your options contact our Shawlands Team on 0141 636 7588.
Tel: 0141 636 7588 www.corumproperty.co.uk 5
Ayr
Bruce Patterson Ayr 01292 880888 b.patterson @corumproperty.co.uk
Market Overview May 2013 Ayrshire sales volumes up 30%. The sun is shining on the Ayrshire housing market! Sales volumes for our Ayr branch are up 30% during 2013 to the end of June. The number of closing date sales (multiple offers for the same property) has risen nearly 40% within our Ayr branch. What is happening in the market and why? Here are some fundamentals; A 26% increase in gross mortgage lending and the governments support of the mortgage market via it’s Funding for Lending scheme has resulted in some of the best mortgage rates ever seen. The number of first time buyers are at their highest level since 2007 and mortgage payments as percentage of disposable income are now below pre credit crunch levels. The low interest rate environment looks set to continue and new Bank of England governor Mark Carney looks set to issue explicit “forward guidance” on the future of interest rates. This has encouraged speculative purchasers back into property as an investment as an alternative to low yielding “traditional” financial products. Ayrshire continues to benefit from the above factors although the influence of demographics must be
Corum Ayr office 14 Beresford Terrace Ayr, KA7 2EG Tel: 01292 880888 www.corumproperty.co.uk 6
mentioned. We continue to witness an increase in the number of purchasers moving to Ayrshire from out with the local area and many of our successful purchasers have funded retirement plans by downsizing from large properties within higher priced areas, such as greater Glasgow. The dearth of suitable new build properties has contributed to the general lack of supply and we now have a substantial mailing list for traditional bungalows and villas within established areas such as Allloway/ Doonfoot and traditional central locations such as Seafield and Prestwick. Two bedroom flats have benefitted from an increase in demand from investors and the surge in activity at the lower price range has created serious demand at the mid range price point house types such as three bedroom semi and detached villas. Although the upper end of the market has still to see the benefit of this increase in volumes however we have completed 11 sales during the quarter at the £400,000 - £750,000 range. Going forward we expect a busy Autumn period as buyers attempt to secure a deal before prices start to rise. It is our opinion that the governments help to buy scheme starting January 2014 will further underpin transaction levels and the general positive economic outlook for the UK will yield an improvement in trading conditions over the short to medium term. As always, any questions are most welcome so please contact me on b.patterson@corumproperty.co.uk for specific property advice.
Bridge of Weir
Murray Houston Bridge of Weir 01505 691400 m.houston @corumproperty.co.uk
Market Overview May 2013 The encouraging indications of a recovering market in Renfrewshire have continued throughout the first half of 2013. Demand for well presented properties with increasing numbers of willing buyers is helping to drive more successful sales with a growing number of closing dates. The highest standards of presentation are paramount to attract a discerning clientele. Corum’s use of professional photography and HD movie tours for our properties has helped to attract higher levels of interest resulting in more viewers and better sale prices.
We expect the activity in the market to increase after the traditional summer holiday period and this may be the ideal time to receive professional advice on the marketing, presentation and correct pricing of your home. Our dedicated sales team can offer accurate advice and would be delighted to discuss the opportunities that this improving market provides.
The demand for different house styles and price bands differs over the different locations in Renfrewshire. The higher priced traditional homes in Paisley are enjoying an overdue uplift in levels of interest, but asking prices must be realistic. Good family homes below the ÂŁ250,000 stamp duty threshold in the villages of Bridge of Weir and Houston are in demand and more stock is required. The conservation village of Kilbarchan has been very popular with several recent properties selling for good prices in a matter of days. Bishopton has benefited from increased profile due to the Dargavel village redevelopment, attracting increasing numbers of buyers.
Corum Bridge of Weir office 2 Windsor Place Main Street Bridge of Weir, PA11 3AF Tel: 01505 691 400 www.corumproperty.co.uk 7
Largs
Neil Bremner Largs 01475 675001 n.bremner @corumproperty.co.uk
Market Overview May 2013 The market in North Ayrshire continues to show signs of sustained recovery with the Branch enjoying significant upturns in numbers of sales and houses commissioned in all price ranges. The second quarter of the year was reminiscent of spring times in more buoyant markets with the majority of sales falling between April and June. Prices have definitely ceased to fall and the next movement is expected to be upward with the ‘main question’ being when rises will happen. With greater mortgage funding being given to the lower end of the market we feel the next half of the year will be a great time to trade up before inevitable price rises increase the gap between the property price bands. Another indication that the market is showing solid signs of improvement is that the average time a property is taking to sell has reduced significantly over the last twelve months. We are not back to the peaks of 2007 where many houses sold within days not weeks but well priced homes, presented in good condition, should now comfortably sell within the Home Report 90 day valuation window.
Corum Largs office 66 Main Street Largs KA30 8AL Tel: 01475 675001 www.corumproperty.co.uk 8
Popular properties within the area continue to be bungalows of all ages and size, flatted properties with sea views and well presented starter homes. Homes in the higher price range are still taking a little longer to sell but as the recovery continues, more purchasers will be tempted by the excellent value for money that these homes represent in this location.
Troon
Colin McCrossin Troon 01292 310010 c.mccrossin @corumproperty.co.uk
Market Overview May 2013 The first six months of the year has provided us with a number of tangible reasons to be both positive now and for the future whether buying or selling in and around Troon. Our year to date figures show increases in all of the following: number of sales, clean unencumbered purchasers and closing dates. A noticeable and hugely beneficial factor over the last six months has been the national media’s reporting which has provided us with some unusually good news concerning the general housing market across Britain including the following increases this year in comparison to last. 42% more first time buyers, 26% more mortgages written and most importantly a 3.2% increase in house prices.
We have successfully handled half a dozen sales between £400,000 and £600,000 and we retain several clients looking to purchase up to £1.5 million. Looking forward to the second six months of the year we expect continued hunger for quality property in the area from Glasgow buyers and hopefully increased interest from local buyers looking to move into their new home in time for Christmas. With a growing number of people on our mailing lists and hopefully more stock coming to the market we expect to have a very successful end to the year.
Sales have been particularly active up to £250,000 with the largest stumbling block to our number of sales being the lack of supply to the market. We have sold a number of properties this year around the £200,000 mark which have attracted several interested parties at closing dates and achieved up to 30% above their asking prices, results more akin to the heady days of 2006/7.
Corum Troon office 29 Portland Street Troon KA10 6AA Tel: 01292 310 010 www.corumproperty.co.uk 9
Corum Branches Ayr Branch 14 Beresford Terrace Ayr KA7 2EG
Newton Mearns Branch 116 Ayr Road Newton Mearns G77 6EG
Tel: 01292 880888 ayr@corumproperty.co.uk
Tel: 0141 639 5888 n.mearns@corumproperty.co.uk
Bearsden Branch 4 Canniesburn Toll Bearsden G61 2QU
Shawlands Branch 247 Kilmarnock Road Shawlands G41 3JA
Tel: 0141 942 5888 bearsden@corumproperty.co.uk
Tel: 0141 636 7588 shawlands@corumproperty.co.uk
Bridge of Weir Branch 2 Windsor Place Main Street Bridge of Weir PA11 3AF
West End Branch 82 Hyndland Road Glasgow G12 9UT
Tel: 01505 691 400 bridgeofweir@corumproperty.co.uk Largs Branch 66 Main Street Largs KA30 8AL Tel: 01475 675001 largs@corumproperty.co.uk
Corum is a trading name of The Corum Partnership, 20 Blythswood Square, Glasgow G2 4GB.
Tel: 0141 357 1888 westendenq@corumproperty.co.uk Troon Branch 29 Portland Street Troon KA10 6AA Tel: 01292 310 010 troon@corumproperty.co.uk