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As the hours of daylight lengthen and the warmth of the sun returns, Ben Stephens, Partner at Stags and Head of Waterside, reflects on the West Country waterside market and considers what may lie ahead.
2022 started in the same vein as 2021, with the supply of property unable to keep pace with demand. As we move into the summer, there are perceptible changes taking place and I would go as far as saying that perhaps, not unsurprisingly, the peak of the market is visible.
In the first quarter, Stags has seen an unprecedented demand for properties by the sea and those vendors that heeded early market commentary have seen the realisation of excellent prices, in many instances ahead of both their own and their agent’s expectations. The ‘hot spots’ for Stags seem to be North Devon and Cornwall, where most sales are the subject of competitive bidding. Once secured, successful buyers are then instructing their solicitor to complete the transaction at pace, before the summer months and, in many instances, fully furnished and equipped. A prime example was the sale of an impressive contemporary townhouse in St Ives, which was agreed above the guide price and completed within five weeks of the agreed sale. This seasonal window of opportunity is closing fast and, when coupled with the end of the staycation boom, I would urge any vendors who are monitoring the market to take the plunge now.
In April, Stags saw a record number of page views on their website, over 1,000,000, and the same month saw the appraisal of waterside homes reach levels that have not been seen before, 18% higher than the five-year average (excluding 2020). Indications are that supply will soon be rising and the power balance changing.
In line with Stags, the broader property market is reporting more agreed sales in April 2022 than the same time last year (when we were in a Stamp Duty Holiday rush) as sellers lock in sales ahead of a possible slow down.
Whilst none of us really know the extent of the market adjustment heading our way, the potent mixture of rising interest rates and a cost of living squeeze coupled with the unwinding of lockdown trends is likely to temper demand and, in turn, prices over the coming months. I therefore find myself sounding like a stuck record when I say that now is the time to speak with your local Stags agent if you are considering a sale.
