The average asking price of property in Lancaster decreased by 6.2% or £12,353 compared to a year ago, taking the current average asking price to £187,521, compared with £199,874 this time last year. But is it really that simple? Sometimes you need to take a look at the bigger picture.
The overall drop in asking prices could be put down to sellers being more realistic with their pricing and looking to benefit from the impending mortgage interest rate rises later in 2018. Great news for first, second and third time buyers in Lancaster starting their property hunting in the usually active spring market this year facing the opportunity of paying less for the property of their dreams. Even better news is that whilst first time buyers also have to pay less for their property, they also have the bonus of the Chancellor stopping Stamp Duty being paid by first time buyers!
So, looking at the different sectors of the Lancaster property market, splitting it down into property types, one can see what is happening to each sector of the market with regard to their average asking prices now compared to a year ago. Firstly, looking at the Pound note amounts …
Interestingly, when one looks at the percentages, the individual figures seem to tell a different story to the overall figure. There is quite clearly upward pressure in the asking price in the apartments, terraced and semi-detached property types, with both first-time-buyer and second-time-buyer properties at new Lancaster asking price highs. It seems possible that less expensive detached property types on the market right now are dragging the average down.
Now, I must stress any growth in these asking prices of Lancaster property doesn’t mean the value of Lancaster property is going up by the same amount … nothing could be further from the truth. Only time will tell if the current levels of Lancaster asking prices is a catch-up abnormality after a couple of months of restrained asking price rises in the first few months of 2018, or is it an initial sign that we are in for a better 2018 Lancaster Property market than all of us were expecting at the start of the year?
I believe these asking prices must be viewed with a pinch of salt, as it will be fascinating to see whether Lancaster properties actually sell at these higher asking prices. Just because house sellers (be they owner-occupiers or landlords liquidating their assets) are asking for more money it doesn’t mean buyers will be enthusiastic to part with their hard earned cash. Like my Mum and Dad used to say to me all those years ago, “You can ask … but you might not get”.
Also, Lancaster homeowners and landlords wanting to sell their property need to be aware of progressively strained buyer mortgage affordability and the more those sellers increase asking prices, the more buyers will hit their maximum on the amount they are able borrow on a mortgage.
However, those Lancaster buyers who need a mortgage (be they owner-occupier or landlord), will paradoxically benefit from lower mortgage payments before interest rates rise … maybe another reason for the uplift in the number first time buyers and landlords buying? Only time will tell!