Nottingham Property Guide

publication date: Jun 25, 2010
 | 
author/source: Guest article from Christopher Watkin
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Nottingham Property Guide


The Nottinghamshire Housing Market has split into two during 2010.

Summary
The Nottinghamshire Housing Market has become extremely polarised over the last six months, whereby estate agents are having two market places for their properties. Those properties coming fresh to market, who are realistically priced and either at the top or bottom in terms of their condition are selling fast and getting good sales enabling those sellers to move on to their new home. However, those sellers who have been on the market for over six months continue to get little interest creating misery by being stuck with homes they want to sell. Prices remain static and at similar levels to the prices that were being achieved in 2004 or 2005.

Headline Numbers

  • Buyers have more choice as the number of properties on the market has risen by 16% since the start of 2010. However, those buyers only buying the fresh properties coming to the market place.
  • The number of new properties coming on to market has remained static throughout 2010 (In March 206 properties per week were coming on to the market in Nottingham. In June, this had risen to only 217 a week)
  • Sellers are selling 5 weeks sooner than at the start of the year, down from 32 wks to 27 wks
  • Different areas have experienced vastly different changes in their average house prices, from almost static prices over the last decade to houses prices that have performed like a rollercoaster at Alton Towers

Spotlight on Areas
Arnold has seen the greatest increase of available properties for buyers to buy, with Arnold’s top five agents seeing their available properties to sell increase from 107 to 142 since March 2010 (a rise of 32%) The typical semi in Arnold has not seen the rollercoaster rise and fall in prices over the last seven years. In 2003, you needed to pay £92k for a semi detached property. That rose to £130k in the boom of 2007 but has only dropped to £117k in 2010. House prices in the East Midlands dropped by 19% between 2007 and 2010. Arnold only dropped by 10%

Ilkeston bucks the trend in this study. Whilst it is one of the quickest selling areas (moving from 24 wks in March to 20 wks in June), it has not seen a similar rise in available properties to buy (such as Arnold and Bingham).

Wilford and Carlton continue to be areas where it takes nearly twice as long to sell a property than other areas of Nottingham. The average price of a terraced house in Wilford has not risen since 2004 at around £100k.

Bingham is the hot area in this study, great news for sellers as it one the areas quickest areas to sell a property in and great news for buyers with a 26% increase in available properties to buy. Bingham and the surrounding area have once the areas most volatile house price movements over the last 10 years. At the turn of the millennium, the average detached house in Bingham was £131k. By 2007, it had risen to £336k, but has only decreased to £282k in 2010, a drop of only 12%.

Property in Long Eaton continues to be strong, with the available property for sale rising (with the five top agents in the town) from 290 in March to 354 in June (an increase of 22%) yet the average length of time a property remains on the market reducing from 24 wks to 21 wks – one of best performing areas in the County.

Apartments in The Park appear to have completely missed the ups and downs of the property market. Back in 2003, you will have needed to pay around £130k for your apartment in The Park. This had risen to £171k by 2007. If the national average reduction in house prices had taken place in The Park post 2007, this should have reduced the average price for that same apartment to £121k. In fact, apartments have held their prices well post boom, only reducing to £153k.

Wollaton has experienced some interesting movements with its house prices. Whilst it takes one of the longest times to sell a property in Nottinghamshire (at 29wks) in Wollaton and only seen a mild increase in its available properties to buy over the few months (at 9%), the gap between the average detached house and average semi detached has increased quite markedly.(Normally most property types go up and down together in the same area). In 2000, the difference in price between a semi and detached was 104% (£49k for a semi and 100k for a detached). In 2010, the gap had increased to 153% (£86k against £218k). It just shows Wollaton is an aspirational area for middle to higher income people to move into as apposed to younger families who want to buy a smaller semi.

Alfreton has experienced the opposite to Wollaton. The gap between its detached and semis has in fact narrowed. In the boom, a detached property was 92% more expensive than a semi (£245k for the detached versus £127k for the semi. This gap has dramatically narrowed to 28% in 2010 (£132k for the detached versus £103k for the semi).

Increase in Properties on the Market
Arnold has seen the highest increase in the number of properties available to buy, with Bingham close behind. Wollaton and Wilford were only in single digits at 9% and 7% respectively.


Area

% increase of properties on the that are on market

Arnold

32%

Bingham

28%

Long Eaton

22%

The Park

18%

Mansfield

13%

Alfreton

12%

Ilkeston

11%

Carlton

10%

Wollaton

9%

Wilford

7%

The average time a property remains on the market
Bingham, Long Eaton and Ilkeston continue to be the fastest selling areas in Nottingham. However, it takes the seller of a property in Wilford and Carlton nearly twice as long to sell theirs.


Area

Average length of time on market in March 2010

Average length of time on market in June 2010

Bingham

24 wks

21  wks

Long Eaton

24 wks

21  wks

Ilkeston

24 wks

20  wks

Arnold

26 wks

23 wks

Alfreton

30  wks

30  wks

The Park

30 wks

27  wks

Mansfield

31 wks

26  wks

Wollaton

35 wks

29  wks

Wilford

44 wks

36  wks

Carlton

48 wks

39 wks


Conclusion
With the number of new properties coming onto the market each week remaining static throughout 2010 (around 200 per week) in Greater Nottingham, the average length of time the house has been on the market reducing (31wks to 27wks) yet stock increasing (by 16%), this anomaly can only be explained by those newer properties coming to market in 2010 selling quickly, whilst those properties that have been on the market since 2009 remain unsold. Buyers are either buying properties that need everything doing to them (renovation) or nothing at all (spotless showhomes). Those properties that are half complete, rough round the edges, tired or need some basic work are proving very difficult to sell.

Final Thought - Selling Property is all about the two ‘P’s - PRICE and PHOTOGRAPHS!
If you have been on the market for more than six months, getting little or no interest, then I would recommend you meet with your agent.  Before you meet them, take a look at what you are offering the buyer with your house compared to what your neighbours (who are also on the market) are offering. If every house is on the market in your street at £100k, but none of you have sold that could mean yours isn’t worth £100k either. Take a walk around your area and see what is selling. Ask the agent what the asking price was of the sold properties. You can be sure it sold very close to asking price because the British don’t like to haggle.

The other important thing (apart from the price) is the photos of your property. Does it stand out from the crowd on the brochure, but more importantly, against your competition? Your photos don’t want be OK, nor do they want to be good. They need to be fantastic. A good agent can make the most boring terrace into a thing a beauty with the right angled shots … and please, please make sure the sun is on the front of your house when the agent takes main picture – even if it means them coming out to retake the photograph – remember you are paying these guys thousands of pounds!

Christopher Watkin

Christopher Watkin

Source: All figures have been taken from the Land Registry or Rightmove

 


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