Why Are So Many Boston Homeowners Selling So Soon After Buying?

The UK property market has seen significant shifts in recent years, particularly during the pandemic.

One of those changes discussed by the Press are the number of properties for sale where the home seller is suffering from ‘buyers regret’. In estate and letting agency online forums, the ‘feeling’ is that there are a lot of properties on the market, where the owner purchased their home during the pandemic years of 2020 and 2021 yet are now back on the market.

There are 694,281 properties currently for sale in the UK and for 8.2% of them, the owner has only been in their home since the end of the lockdown.

This article will calculate the percentage for Boston (as the numbers are much smaller and more interesting to Boston people), the reasons behind this trend and its implications for the local housing market.

The Post-Lockdown Buying Frenzy in Boston

The pandemic brought unprecedented changes in the British property market. After the first lockdown in spring/early summer 2020, remote working became the norm, and many people re-evaluated their living situation. The desire for more indoor and outdoor space became a priority. This led to a surge in property purchases, particularly in suburban and rural areas. Buyers were eager to escape the confines of inner-city life, seeking more spacious and comfortable homes.

To give you an idea of the numbers, the average number of UK homes sold (including new homes) since 2005 has been 1,169,864 per year (or 292,466 per quarter). Yet, the average quarterly number of UK house sales in the 12 months between Oct 2020 and Sept 2021 was considerably more at 1,553,860 (or 388,465 per quarter).

However, this buying frenzy was driven not just by lifestyle changes but also by favourable economic conditions. Low interest rates and government incentives, such as the stamp duty holiday, made buying a property more attractive than ever. Many people took advantage of these conditions, leading to a boom in property sales.

So, how often do people move home?

 

Traditionally, homeowners in the UK tend to stay in their properties for a significant length of time. There are 17,693,200 owner-occupied homes in the UK, and in 2023, a total of 1,023,500 (1.02 million) homes were sold.

This 1.02 million figure includes 231,000 new homes, leaving 790,500 sales of existing (second-hand) homes. This is significant because it means that only 4.48% of existing owner-occupiers moved home in 2023, implying that, on average, existing homeowners move every 22 years and 17 weeks.

With this information, one would expect the number of homeowners looking to move so soon after buying their home to be relatively small. Therefore, we decided to analyse the properties for sale in Boston and see if the statistics match the anecdotal suggestions.

There are 354 properties currently for sale in the Boston area.

Out of these, 41 properties were purchased during the pandemic years of 2020/21.

The breakdown of these properties is as follows:

 

·         Detached Boston houses: 15

·         Semi-detached Boston houses: 11

·         Terraced Boston houses: 9

·         Boston Apartments: 0

·         Boston Bungalows: 6

 

This raises the question:

 

Why are 8.2% of UK (or 11.6% of Boston) homeowners looking to sell so soon after buying?

 

Several factors could be contributing to this trend:

1. Overestimating the Appeal of Suburban/Rural Living: During the pandemic, moving to a more suburban/rural setting like Boston might have seemed idyllic. However, the reality of suburban/rural living - such as longer commutes, fewer amenities, and a different pace of life - might not have lived up to expectations for some homeowners. As a result, they are now looking to move again.

2.      Changes in Work Arrangements: While remote working was widely adopted during the pandemic, many companies are now calling employees back to the office, at least part-time. This shift can make living in more remote areas less practical, prompting homeowners to relocate closer to their workplaces.

3. Economic Pressures: The financial landscape has also changed since the height of the pandemic. Rising interest rates will make homeownership less affordable for some people, leading them to sell their properties sooner than planned.
4. Market Opportunities: The current property market might allow Boston homeowners to make a profit. With Boston property values having increased over the past few years, some owners might be looking to capitalise on this and sell their homes at a higher price.

Implications for the Boston Property Market

This higher-than-normal number of properties selling so soon after moving in will undoubtedly increase the number of homes for sale.

The average number of properties for sale in the UK in May 2017 was 568,845; in May 2018, it was 660,019; and in May 2019, it was 667,532 (an overall average of 632,132 for three years combined). In May 2024, it was 694,281 (as mentioned in the introduction).

This increase in the supply of homes for sale means Boston house sellers need to be realistic with their asking prices, as the competition is greater.

To back up the idea that realistic pricing is vital if you want to move home, only 53 out of every 100 properties leaving UK estate agents' books since January 2024 have been sold, exchanged and completed, while the other 47% have come off the market unsold.

Moreover, this trend could signal a shift in how people view homeownership post-pandemic. The rush to buy during the pandemic might have been more about immediate needs and desires than long-term plans. As the world returns to normalcy, people's housing preferences and requirements will likely evolve, leading to more dynamic movements in the property market.

Final thoughts -

The trend of pandemic-era homebuyers in Boston putting their properties back on the market highlights the fluid nature of the current property market. While the reasons for this trend are varied and complex, it reflects broader changes in how we live and work. As the property market continues to adjust to post-pandemic realities, buyers and sellers in Boston must stay informed and adaptable to navigate these changes successfully. One option to stay informed is to follow our agency on social media for more articles like this.

If you are considering moving soon after buying your Boston forever home only a few years ago and would like to discuss your options without any obligation, then let's have a chat.

 Why Hasn’t the Boston Property

Market Crashed?

The UK property market has demonstrated remarkable resilience despite facing significant challenges over the

past 18 months. Many analysts in the autumn of 2022 predicted a severe downturn in house prices, driven by

economic uncertainty, a cost-of-living crisis, and rising mortgage rates.

Yet, contrary to these grim forecasts, UK (and Boston) house prices have remained relatively stable. This

article delves into the reasons behind the unexpected stability of the property market, providing insights for

buy-to-let landlords and homeowners alike.

Economic Predictions vs Reality

In the autumn of 2022, following the controversial Liz Truss and Kwasi Kwarteng mini budget, there were

widespread predictions of a dramatic fall in UK house prices. Some forecasts suggested a potential decline of

between 20% and 35%. However, these predictions have yet to materialise. While there has been a slight drop

in prices since their peak in autumn 2022, the decrease has been modest, with official Land Registry figures

indicating a fall of about 3.12% in UK house prices in the last 18 months.

Yet if we look at the last 12 months, British house prices according to the Land Registry were 0.89% higher in

April 2024 than April 2023. Yet the issue with Land Registry data is that by its very definition, it is 6 to 8

months out of date, as it measures house prices agreed 6 to 8 months before that data is published.

Data from Denton House Research using live real time data of £/sq.ft sales agreed statistics indicate UK house

prices on the 97k sale agreed homes in May 2024 stood at £348/sq.ft.

For comparison, in April 2024 it was £344/sq.ft, in March 2024 and February 2024 it was £339/sq.ft and in

January 2024 it was £331/sq.ft, a rise of 5.13% since the New Year.

This resilience raises the question: Why were the forecasts so inaccurate?

Improved Lending Practices

One significant factor that has helped stabilise the property market is the improvement in lending practices.

During previous housing market downturns, banks often came under fire for poor lending standards. However,

changes to mortgage regulations in 2014 with the Mortgage Market Review (MMR) have made a considerable

difference this time. These regulations require banks to ensure borrowers can afford their monthly

repayments even if mortgage rates increase significantly. This precaution has provided a substantial buffer for

homeowners, enabling them to cope with rising rates.

For instance, in 2007, shortly before the global financial crisis, many borrowers did not need to prove their

income to their banks. The 2014 MMR changes addressed this issue, ensuring that lending was based on

sound financial footing. Consequently, many homeowners could afford higher mortgage payments when their

mortgage rates increased recently.

Employment and Wage Growth

Another crucial element has been the relatively stable employment situation. Although the UK experienced a

brief recession over this last winter, unemployment rates have remained low at 4.3%, compared to 8.5%

during the 2008 global financial crisis. Moreover, average wages (including bonuses) have increased by 5.7%

over the past year, reaching their record-high level of £682 per week.

This combination of low unemployment and rising wages means that fewer homeowners have been forced to

sell their properties due to financial difficulties. Even those facing financial challenges have found support

from proactive banks, which have offered solutions such as interest-only payments or extended mortgage

terms to help them manage their repayments.

Supply and Demand Property Market Dynamics

The impact of economic challenges on the property market has been more evident in transaction volumes

than in prices. Typically, there are about 1.16 million house sale completions annually in the UK. However, this

number surged to 1.48 million in 2021 due to the lockdown inducing ‘race-for-space’. It then dropped to 1.26

million in 2022 and further to 1.02 million last year.

While demand has decreased because of higher mortgage costs, supply has also reduced as potential sellers

have chosen to wait for better market conditions.

There was an 11.5% increase in net house sales in the first five months of 2024 compared to the first five

months of 2023 (400,697 UK net house sales YTD to 26th May 2024 vs 359,523 UK net house sales), but only a

9.9% rise in new homes coming to the market (745,715 UK listings YTD to 26th May 2024 vs 678,845 UK

listings).

First-Time Buyers and the Rental Market

First-time buyers have been particularly affected by rising mortgage rates, as they typically need to borrow a

larger proportion of their homes value. Despite this, they have been more active than expected, partly due to

the rapid rise in rental prices. High rental costs have motivated many to purchase homes, often with financial

help from their families. Data from the English Housing Survey revealed that just over 11 out of 30 first-time

buyers received financial gifts from their families in the past year, up from 8 out of 30 in 2022. This support

has played a vital role in maintaining activity in the housing market.

Boston Property Market

So how is all this affecting the Boston property market? One measure is judging what people are paying for

Boston homes.

Looking at the monthly exchange of contracts data, the average price paid from May 2019 to

April 2020 for a Boston home (PE21) was £155,135. The average price paid in the last year

(June 2023 to May 2024), has been £188,960, a growth of 21.8%.

Now, it is important to stress, this does not mean Boston house prices have risen by 21.8%, just the average

price paid between the two 12-month periods has changed. Over the coming weeks and months, we will be

analysing the £/sq.ft data for Boston and reporting back in the Boston Property Blog.

Outlook for House Prices

Eighteen months ago, economists almost unanimously predicted a decline in house prices. Now, many are

forecasting growth. Estimates vary, with some predicting a 4% increase, although this might be optimistic.

Other estimates suggest a 3% rise, while some analysts expect prices to remain broadly flat this year due to

stretched affordability, especially for first-time buyers.

The UK property market has shown an impressive ability to weather economic storms, thanks to sound

lending practices, stable employment, rising wages, and family support for first-time buyers. Whilst

transaction volumes have taken a hit from the heady days of 2021 and the long-term average, this has meant,

along with the other factors mentioned in the article, house prices have remained more stable than many

predicted.

If you are wondering about the general election’s effect on the property market, it is our belief it will have

hardly any effect on the medium-term direction of the property market (on the assumption neither of the main

parties have any ‘creative and wacky’ policies not yet published at the time of writing this article).

So, as we progress into the second part of 2024 and beyond, the property markets resilience will continue to

be tested, but the foundations laid in recent years provide a solid base for navigating future challenges.

 

Making Sense of the Boston Property Market's £179 per Square Foot Value

Boston, a vibrant town with a diverse property market, offers countless opportunities for homeowners seeking their next home. However, navigating this landscape requires a strategic approach to avoid common pitfalls. If you're a current Boston homeowner weighing up your options for a potential move, this guide will shed light on some key factors to consider.

 

The Diverse Landscape of Boston Properties

 

Boston boasts an array of properties varying in age, size, and style, which means there's something for everyone. Some homebuyers prefer newly built homes for convenience and low maintenance, while others opt for established homes. These older homes offer more space for your money and sometimes renovation potential.

 

However, this diversity makes it crucial to look beyond surface-level data to understand a property's value truly. Other distinctions that impact a property's value include location, layout, bedrooms, condition, and unique features.

 

A prime example is the disparity in price per square foot among properties across the town.

 

Currently, the average Boston property is

on the market at £179 per square foot

 

Yet, this only tells half the story.

 

The problem with averages is they hide the outliers and exceptions. Outliers/exceptions are the statistics and numbers that go far outside the average value of a group of statistics, yet they are where the magic happens.

 

Therefore, I suggest we look at the 'central 80% range' instead of just the average. This is, in essence, the core 80% cut of the stats, thus excluding the top and bottom 10% of stats. Consequently, looking at the 'central 80% range’ for Boston …

 

80% of properties currently for sale in Boston are

between £116 per square foot to £245 per square foot

 

This broad range highlights the importance of not relying solely on square footage averages when valuing your next home.

 

Another example is bedrooms. Typically, a 4-bedroom home is expected to be valued higher than a 3-bedroom home, which generally holds true. However, there is some overlap between their price ranges.

 

In Boston, the average asking price of a 3-bedroom home is £195,000, compared to £309,000 for a 4-bedroom home

 

Everything is in order there, as would be expected.

 

Yet when examining the 'central 80% range' - the prices for 3-bedroom homes in Boston fall between £120,000 and £285,000. Meanwhile, the 'central 80% range' for 4-bedroom homes spans from £199,000 to £410,000.

 

As you can see, there is quite an overlap!

 

Finding the Right Balance: Practicality vs. Emotional Connection

 

When considering your next Boston property, it's important to strike a balance between practicality and the stuff you can't measure with a statistic - i.e., the emotional appeal.

 

On the practical side, you could create a list of essential features - such as desired neighbourhoods, reception rooms, layout, garden size, and local amenities - to help you prioritise properties that meet your needs. For instance, proximity to good primary schools will be vital if you plan to start a family or already have children. Similarly, desirable features like south-facing patios and gardens, modern kitchens, and open floor plans can significantly impact your enjoyment of the home.

 

On the practical side, evaluate the duration of your stay in the new property. Most homeowners of smaller to medium-sized Boston homes move every five to six years, so considering the marketability of your home when it's time to sell is crucial. An area with convenient transport links, a vibrant local community, and proximity to shops or leisure facilities will appeal to future buyers.

 

However, your personal ‘emotional connection’ to a property should not be overlooked. The feeling you get when you walk through the door, the view from the kitchen, and the unique atmosphere of each home influence long-term satisfaction and value. The blend of rationality and emotional resonance will ultimately guide you toward a decision that reflects your aspirations.

 

Recognising Hidden Costs and Potential Returns

 

When moving into a new property, it's essential to factor in hidden costs like Stamp Duty, legal fees, surveys, and mortgage arrangement fees. You should also be mindful of the maintenance costs, renovation expenses, and unexpected repairs that can arise, especially with older properties.

 

Conversely, consider the potential for returns if you invest in upgrades or improvements. A well-thought-out renovation could significantly increase the value and desirability of your home, providing excellent returns if you decide to sell. However, assessing the cost-benefit ratio before embarking on a project is essential, as over-investing might not always yield a profitable return (again, I can advise on that).

 

Ready for Your Next Move?

 

In conclusion, finding your ideal Boston property involves much more than crunching numbers. Your decision should reflect a careful blend of practicality and emotional resonance with the home, all while understanding market conditions.

 

If you are considering a move and would like expert advice on your property's value or the current Boston property market, don't hesitate to reach out.

 

I'd be delighted to help you assess your options and guide you toward making an informed decision that aligns with your aspirations. Your dream property awaits, and I'm here to help you find it.

 

 

 

Is it a Boston Buyers’ or Sellers’ Property Market?

 

Navigating the property market in Boston? Understanding the current market dynamics is essential whether you're looking to buy a dream home or sell a cherished property. Recent data reveals a fascinating surge in property transactions across the UK, with Boston included in all this bustling activity.

 

As of April 2024, property sales and listings have increased significantly, indicating a robust market. Yet, what does this mean for you? Is Boston a buyers’ market, favouring those looking to purchase, or a sellers’ market, giving an edge to those wishing to sell?

 

This article delves into the latest figures and trends, offering crucial insights and strategic advice for prospective buyers and sellers in Boston. Read on to discover the opportunities in this dynamic property landscape and how you can best navigate it to your advantage.

 

Up to Sunday, 21st April 2024, the number of UK homes that went under offer (sold stc) was 10.3% higher than during the same period in 2023.

(377,217 home sales agreed on YTD in 2024 compared to 341,271 YTD in 2023)

 

Even more interesting when we compare the average of 2017/18/19 year to date (YTD) sales agreed figure of 351,027.

 

Every UK region has seen an increase in the number of properties selling (subject to contract). Yet what is more interesting is that the different regions of the UK property market have shown a remarkable uniformity in growth across the country for the YTD in 2024, signalling robust health and widespread confidence.

 

Leading the charge, Inner London showcased a stellar rise of 21.09%, closely followed by Outer London at 20.47%, reinforcing the enduring appeal of the capital. East Anglia and the South East were not far behind, registering impressive gains of 19.65% and 19.48%, respectively, underscoring the continuous attractiveness of the South East. The Midlands, both East and West, also enjoyed substantial growth at 18.20% and 18.02%, indicating a resilient market presence. Up North, the North West at 17.70% and Yorkshire & Humber at 17.27% demonstrated significant upward movement, whilst the South West advanced with a respectable 16.11% increase.

 

The North East, Wales, Scotland, and Ulster presented growth figures of 14.74%, 14.00%, 12.43%, and 12.38%, respectively, suggesting a balanced expansion across the entire UK. Although most pronounced in London and the South East, the growth spectrum exhibits a promising scenario for the UK property sector, with the narrow gap between the highest and lowest growth regions illustrating a cohesive national uptrend.

In addition to increased property sales, the supply of UK properties on the market in April 2024 was 11.8% higher than in April 2023.

(654,913 properties for sale in April 2024 versus 585,741 for sale in April 2023)

 

This increase in the number of properties for sale is good news, as it gives buyers greater choice.

 

Even if you sell your property, there's no guarantee that it will go through to exchange of contracts and completion. Thankfully, 2024 sale fall-throughs are at 22.5% of gross sales YTD, which is much lower than the 7-year average of 24.3%.

 

Net sales (house sales agreed less sale fall throughs) paint an

even better picture, with a rise of 12.6% year on year.

(295,912 Net sales YTD 21^st April 2024 vs 262,871 Net sales YTD 21^st April 2023)

 

Prospective purchasers and vendors are witnessing a rise in confidence as mortgage rates, after climbing sharply last year, have begun to decline recently. Inflation stands at 3.8%, a steep fall from the 9.6% high of October 2022. Furthermore, average mortgage rates have settled, with many banks and building societies now offering decent rates. For example, at the time of writing, Nat West was offering a 5-year fixed rate of 4.37% for those with a 30% deposit, Virgin Money a 5-year fixed rate of 4.69% with a 10% deposit and the Leeds Building Society a 5.14% 5-years fixed for those with a 5% deposit.

 

Despite these positive signs, Boston house price levels are expected to hold steady, with the market remaining buyer-friendly due to mortgage affordability issues.

 

The easing of mortgage costs (compared to the summer of 2023) has undoubtedly sparked renewed interest and dealings in the property market, particularly after a lull period in the second half of last year, when many considering a move put their plans on hold. This revitalisation is anticipated to boost the volume of homes sold, which had dipped to an 11-year low of just over one million in 2023.

 

Nevertheless, it's unlikely this momentum will cause a marked rise in house prices in 2024, with the market maintaining a delicate equilibrium, in contrast to 2021's full-on extreme sellers’ market.

 

Boston homeowners planning to sell in 2024 may be buoyed by this uptick in market activity; however, they should temper their expectations as buyers remain keen on value, which could dampen the current pace of recovery in the property market. Caution is also advised due to the traditional hesitance seen in the property market during a general election year, with buyers and sellers often taking a more conservative approach as the election looms.

 

This is the time to be realistic with your pricing if you’re

going to put your Boston home on the market.

 

So, what sort of market are we in?

 

The measurement of whether it's a buyers', balanced, or sellers' market is based on the proportion of properties marked as "Sold STC" and "Under Offer" compared with the total number of properties on the market. For example, if there are 43 properties sold STC and 100 properties available/for sale, then 43 as a percentage of 100 is 43%.

 

This isn't just a numbers game; it's a gauge of market sentiment:

 

·         Extreme Buyers' Market (0%-20%)

·         Buyers' Market (21%-29%)

·         Balanced Market (30%-40%)

·         Sellers' Market (41%-49%)

·         Hot Sellers' Market (50%-59%)

·         Extreme Sellers' Market (60%+)

 

The weight of these brackets can’t be overstated. They directly impact everything from listing prices to negotiation leverage.

 

Current Boston Property Market Snapshot

 

To calculate Boston's property market's current status, let's incorporate our most recent findings for April 2024. The numbers and statistics have been taken from the website 'The Advisory', which has calculated the market state for many years. I am sharing them from the summer of 2018 to April 2024.

 

·         The Boston postcode district of PE21 showed an extreme sellers’ market at 71% in the summer of 2021, which eased off throughout 2022.

 

·         Throughout 2023, the Boston property market was in the high 30%/early 40% ranges (a balanced/sellers’ market). As expected, because of the seasonal nature of the property market, by February 2024, this had reduced to 36%.

 

·         Since February 2024, it has increased slightly to 40%.

 

 

The Consequences and Thoughts for Boston's Property Market

 

This new data prompts me to take stock and ponder.

 

For Boston Sellers: We are transitioning into a market where sellers must be more strategic, flexible, and patient. It would help if you braced yourself for your home to be on the market for longer with an extended marketing period. Realistic pricing is even more vital than ever. Setting at the right price is crucial for attracting suitable buyers.

 

Why? Because your chances of selling your Boston home have dropped in the last few years.

 

In the spring of 2022, 77.16% of Boston homes that were on the

market sold and completed. Since 1^st January 2024, that figure has dropped to 61.54%.

 

Your marketing strategy is just as important. Employing tools such virtual 360 tours, targeted social media campaigns, or interactive property listings could be particularly beneficial in this more ‘normal’ market of 2024.

For Boston Buyers: Expect intense competition if you're interested in highly sought-after types of properties. Securing mortgage pre-approval can put you ahead of other prospective buyers. Consider expanding your search area to discover potential deals that others may overlook. Conversely, in less competitive markets, Boston buyers have more leverage to negotiate, from the offer price to inclusions like carpets, fixtures, and fittings. You will also have the luxury of choice and time with other homes.

 

Remember, four out of five sellers are also buyers, so what you

may lose on the sale might be compensated for on the purchase.

 

External influences, such as global economic trends, inflation, and interest rate repercussions, could all cast shadows on the Boston property market. The election will undoubtedly affect the Boston property market, as everything will go on ice in the three or four weeks before the election itself.

 

Final thoughts: As we progress into the fifth month of 2024, the Boston property market presents challenges and opportunities for buyers and sellers. Understanding these market subtleties is crucial for anyone considering a move, from existing homeowners to seasoned buy-to-let investors, first-time buyers, or those looking to relocate to Boston.

 

Stay flexible, stay informed, and remember that your home-moving experience is as much about the journey as the destination.

 

What are your thoughts on Boston's developing property market?

 

Do you anticipate any other shifts or trends in the Boston property market?

 

What are your local insights and experiences?

 Let's delve into the fascinating world of British housing trends and statistics. Have you ever pondered over the average time British people stay in their homes? This graphic reveals the answer!

As expected, those in private rented accommodation stop for the least time, at 4.3 years.

Those buying a home with a mortgage tend to stay an average of 9.2 years. Those in social rented homes (council housing or housing association properties) stay a little longer, at an average of 12.2 years. Finally, those homeowners without a mortgage stay the longest, at 23.2 years!

Are there any surprises in this? How does your own living situation compare? How long have you lived in your Boston home?

 

Boston Homeowners:

Miss the 6th of June 2024 Deadline and You Might Miss Christmas in Your New Home.

 

As May comes into view, with the anticipation of the warm summer months ahead of us, with sun-drenched hot beaches and cold ice cream, the thoughts and contemplations of Christmas seem a million miles away.

 

Yet many people who wish to move would like to be in for Christmas.

 

If that is you, listen up, as you might be surprised by what I tell you. Boston home buyers and sellers dreaming of celebrating Christmas 2024 in a new home, the time to act is running out.

 

The property landscape has evolved significantly over the past few years, reflecting changes in buyer behaviour and the intricacies of the transaction process itself.

 

Recent statistics from the UK property market reveal some thought-provoking trends.

 

From April 2023 to April 2024, UK properties took an average of 69 days from listing their home for sale with an agent to an agreed sale, with a subsequent 112 days to completion (i.e. completion is when the keys and monies change hands). That’s a total of 181 days. This is a shift from the previous year (April 2022 to April 2023), where it took 47 days to secure a buyer and 124 days from agreement to completion.

 

That means if you placed your property onto the market in the first week of May, looking at the average amount of time to complete, you will be moving in the first or second week of November.

 

Boston's local figures align closely with national trends but with its unique nuances.

 

Between April 2022 and April 2023, it typically took 49 days to find a buyer and 124 days for the legal completion in Boston.

 

However, these past 12 months have seen a lengthening in the initial part of the selling process. It now takes about 78 days to find a buyer, though the span from sale agreement to completion has slightly decreased to 105 days.

 

This means it takes the Boston home seller 183 days from listing their Boston home to moving out - just about six months.

 

These numbers paint a clear picture: selling a home and settling into a new one is not as swift as many might hope. Given these timelines, homeowners looking to move home by Christmas should ideally be putting their homes on the market by late May or early June.

This allows ample time for each phase of the selling process, from attracting the right buyer to navigating the legal intricacies with solicitors. It ensures that you can put up your Christmas tree and decorations in your new living room comfortably before Christmas.

 

That means if you want to move into your new home by Friday, 6^th December 2024, you will need to put your home on the market by Thursday, 6^th June 2024.

 

This is assuming you hit the average times scales mentioned above for Boston.

 

Why the urgency? The current market conditions suggest a slower pace in securing buyers, which can be attributed to various factors, including economic uncertainties, changes in mortgage rates, and a more discerning buyer pool. The national reduced time from sale agreement to completion, however, indicates that once a buyer is secured, the process is becoming more streamlined - a positive sign for sellers.

 

Prospective Boston sellers should also consider

the advantages of the current property market.

 

With the extended time to attract buyers, presenting your property at its best has never been more crucial. This means addressing any maintenance issues, considering upgrades that increase property appeal, and staging your home to capture the imagination of potential buyers. Effective marketing through an experienced estate agency can significantly enhance visibility and attract quality offers.

 

Moreover, engaging with a knowledgeable Boston estate agent early in the process can provide crucial guidance. They can help navigate the complexities of the Boston market, advise on realistic pricing strategies, and manage the sale process to avoid common pitfalls that could delay proceedings.

 

For those contemplating a move, the message is clear: acting sooner rather than later is prudent. The market's current pace means that starting the process in the next couple of weeks is essential to ensure you are settled in your new home in time for the festive season.

 

This isn’t just about moving house; it’s about moving home. It’s about ensuring that by the time December’s frost dusts the streets of Boston, you are warm and settled, with the comforting scent of mulled wine wafting through your new home.

 

While the Boston property market may present challenges, thorough preparation and timely action can pave the way for a smooth transition to your new home by Christmas. Remember, the perfect moment to put up your property for sale is now. Let’s make your festive dreams a reality - speak to  us today by calling 01205 365500 and take that first, decisive step towards your new beginning.

 

Boston Property Owners Reap

£5,208 Yearly Gains Since 2001

 

As we are now nicely into 2024, it's certain the Boston housing market over the last 18 months has been a little more restrained than 2020, 2021 and early 2022, and I believe that the ‘steady as she goes’ outlook will continue into the rest of 2024 and beyond.

 

As property ownership is a medium to long-term investment, it is important to see what has happened to Boston house prices.

 

Since the start of the Millennium (Jan 2001), the average Boston homeowner has seen their property’s value rise by an average of 221%.

 

This is important as house prices are a national obsession and tied into the health of the UK economy as a whole. Most of that gain has come from the overall growth in Boston property values, while some of it will have been enhanced by extending, modernising, or developing their home.

Taking a look at the different types of property in Boston and the profit made by each type, it makes interesting reading:

·         Overall Average for All Homes in Boston. The average price of all homes in Boston in 2001 was £55,818. Now it's 2024, and it has risen to £175,594. This is a total profit of £119,776 (which is £5,208 profit per year per home or an annual growth of 9.6% per year).

 

·         Apartments in Boston. The average price of an apartment in Boston in 2001 was £20,957. Now it's 2024, and it has risen to £87,561. This is a total profit of £66,604 (which is £2,896 profit per year per home or an annual growth of 14.2% per year).

 

·         Terraced/Town Houses in Boston. The average price of a terraced/town house in Boston in 2001 was £36,006. Now it's 2024, and it has risen to £109,490. This is a total profit of £73,484 (which is £3,195 profit per year per home or an annual growth of 8.9% per year).

 

·         Semi-Detached Homes in Boston. The average price of a semi-detached home in Boston in 2001 was £42,136. Now it's 2024, and it has risen to £184,213. This is a total profit of £142,077 (which is £6,177 profit per year per home or an annual growth of 14.8% per year).

 

·         Detached Homes in Boston. The average price of a detached home in Boston in 2001 was £90,721. Now it's 2024, and it has risen to £255,796. This is a total profit of £165,075 (which is £7,177 profit per year per home or an annual growth of 7.9% per year).

 

However, we can’t forget there has been 79% inflation over those 23 years, which eats into the ‘real’ value (or true spending power of that profit) … so if we take into account inflation since 2001, the true ‘spending power’ of that profit has been lower.

 

·         Overall Average for All Homes in Boston. The total 'real profit' (i.e., after inflation has been removed) for the average Boston home is £66,653 for the last 23 years. This equates to £2,898 'real' profit per annum.

 

·         Boston Apartments. The total 'real profit' (i.e., after inflation has been removed) for the average Boston apartment is £37,064 for the last 23 years. This equates to £1,611 'real' profit per annum.

 

·         Boston Terraced/Town Houses. The total 'real profit' (i.e., after inflation has been removed) for the average Boston terraced/town home is £40,893 for the last 23 years. This equates to £1,778 'real' profit per annum.

 

·         Boston Semi-Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Boston semi-detached home is £79,063 for the last 23 years. This equates to £3,437 'real' profit per annum.

 

·         Boston Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Boston detached home is £91,861 for last 23 years. This equates to £3,994 'real' profit per annum.

 

Thus, the annual profit for an average Boston home,

adjusted for inflation, stands at £2,898.

 

I wanted to illustrate that despite the 2008/09 Credit Crunch property market crash, which saw Boston property values plummet by 15% to 20% over 18 months, homeowners in Boston have still fared better over the long term than those renting.

 

Looking ahead, a common question I get asked is about the

future trajectory of the Boston property market.

 

The primary influence on maintaining house price growth in Boston over the medium to long term will be the construction of new homes locally and nationally. Although we have yet to get the figures for 2023, government sources indicate that the number of new households is expected to be between 210,000 and 220,000. Considering the annual need is for 300,000 new households to meet demands arising from factors such as immigration, increased life expectancy, higher divorce rates, and later cohabitation, it’s clear that demand will continue to outstrip supply unless the government heavily invests in building council houses.

 

This can only be good news for Boston homeowners.

 

What about Boston landlords, though?

 

Even though the number of landlords liquidating their property portfolios has increased in the last couple of years and the number of landlords buying is lower than in the 2000s and 2010s, there is still net growth in the size of the private rented sector each year. This is all despite facing higher taxes. The simple fact is many Boston landlords remain keen on expanding their portfolios in the long term.

 

The younger generation in Boston views renting as a choice that offers flexibility and alternatives that homeownership does not provide. This means that demand for rentals will keep growing, allowing landlords to enjoy rising rents and capital appreciation. However, Boston buy-to-let landlords must adopt more thoughtful strategies to maintain profitable returns from their investments.

 

As a Boston buy-to-let landlord, the question for you is how to

ensure this growth continues.

 

Since the 1990s, generating profits from buy-to-let property investments was straightforward. Moving forward, with changes in the tax laws and the balance of power, achieving similar returns will be more effortful. Over the past decade, I've observed the evolution of agents from mere rent collectors to strategic portfolio managers. I, along with a select few agents in Boston, am adept at providing comprehensive, strategic portfolio leadership. This service offers a structured overview of your investment goals across short, medium, and long-term horizons, focusing on your expected returns, yields, and capital growth. If you seek such advice, feel free to contact your current agent or me directly at no cost or obligation.