A number of landlords, first time buyers and investors have approached me recently, asking about the Walsall property market. The common thread in these conversations is the question around all these headlines of massive increases in property values in the UK. Should we be worried we are about to have a price crash?
I’m not going to proclaim that everything is now hunky dory with our economy but it is now actually looking a lot healthier (compared to the doom and gloom of 2008), and there are signs we are seeing more green shoots confirming an actual recovery after several false starts.
I am of the opinion that over the last few years, whilst mortgages have been a little more difficult to obtain than the last decade of the 2000’s, this lack of mortgages has produced some pent up demand for property. Now we appear to be on the other side of the financial crisis, and the banks are more willing to lend, this is why sales, prices and first-time buyer numbers have improved so rapidly.
What we’re seeing is a relatively normal market correction, not a quick transition from a recession to a boom.
Property values in Walsall have risen, on average by only 2.89 % in the last 12 months. When I look at the West Midlands as a whole, prices have risen by 3.64% and nationally by around 5.5%. Compared to the boom years of 2001 to 2004, when property values increased by 21% in 2001, 34% in 2002 and 16.0% in 2003 in Walsall, I cannot see why some are concerned about an unsustainable price boom. I believe house prices are rising off a low base and talk of a housing bubble in relation to the national market is overdone.
We are seeing continued exceptional property price growth in London combining with modest gains across other regions and creating a picture of a broadening market recovery, and I expect prices to continue to rise in the short term.
Speaking to other industry experts in Walsall, they feel the issue isn’t house price inflation, but a lack realistically priced properties coming onto the market for sale, hence, a lack of supply.
In the last two weeks of April 2016, 187 properties came on to the market for sale in Walsall, two months later (in the last 14 days before today, 21 June 2016), only 165 properties came on to the market. So should you be buying a property in Walsall? Well, if you ask me, then I would say now is a good time to buy. I’ve just assisted one of my clients to purchase two great buy-to-lets in Walsall. Each acheivng around 6% yields in rental income. I see the Walsall property market and especially the Walsall property rentals market going from strength to strength regardless of what is happening with the referendum on Thursday with Brexit or elsewhere. It does however, depend on how long you plan to own the property (whether as a home or investment), whether it personally suits you and most importantly whether you can afford it.
Walsall first time buyers preparing to take the plunge should bear these factors in mind. The biggest issue must be that buyers ensure they can take the hit of future interest rate rises and therefore, I ask the first time buyers of Walsall to make sure you’d be happy in your new home, because you could be stuck there in five years’ time.
Landlords tend to buy for the long term, so these short term movements don’t tend to affect them as much. As mentioned in previous articles, the lack of supply in Walsall of new properties coming onto the market indicates people wanting to buy have to move quickly, and don’t have the luxury of a few weeks to decide to view the property. However, my findings show that first time buyers and landlords in Walsall aren’t prepared to pay over the odds for a property to secure it. Maybe, just maybe, the memory of the 2008 price crash has given a dose of realism to the optimistic sections of the Walsall property market?
If you would like to discuss anything further then please, send me an email or call me directly on 01922 311016/ firstname.lastname@example.org.