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.

 

2-Bed or 3-Bed

Boston Homes:

Which Sells the Fastest?

 

Understanding the nuances of property sales is essential for both homeowners and investors in the dynamic Boston property market.

 A few weeks ago, I stated that of the Boston properties that have sold subject to contract (stc) in the three months of Dec, Jan & Feb, it took an average of 80 days to sell.

 Now time has moved on, looking at the Jan, Feb and March Boston house sales, this has increased slightly, so now …

the average Boston home in Q1 2024 was on the market

for an average of 83 days before agreeing on a sale. 

This change, though minimal, is noteworthy against the backdrop of the UK's economic environment. 

As a seasoned estate agent in Boston, my interactions with landlords and homeowners eager to navigate the Boston property market have revealed a common query: the impact of property type and number of bedrooms on its saleability.

Saleability can be measured in several ways. One method is to calculate what percentage of homes of that type, etc, sell compared to how many do not. Another is to calculate how long it takes to agree on a sale. A few weeks ago, I looked at how the price range affects how long it takes to agree on a sale. Therefore, for this article, I wish to look at how quickly a property sells when looking at the type of property or the number of bedrooms.

 

Boston Detached, Semi-Detached, Terraced or Flat –

Which sells the quickest?

 

Looking at the home sales that have taken place in the last three months, this is how long it has taken to find a buyer for the different property types: 

·         Detached homes in Boston - 103 days to find a buyer.

·         Semi-Detached homes in Boston - 62 days to find a buyer.

·         Terraced/Town Houses in Boston - 34 days to find a buyer.

·         Flats/Apartments in Boston - 73 days to find a buyer.

 

Boston 1 beds, 2 beds, 3 beds, 4 beds or even 5+ beds –

Which sells the quickest?

 Looking at the home sales that have taken place in the last 3 months, this is how long it has taken to find a buyer for the different bedroom types: 

·         One bed homes in Boston - 299 days to find a buyer.

·         Two bed homes in Boston - 55 days to find a buyer.

·         Three bed homes in Boston - 81 days to find a buyer.

·         Four bed homes in Boston - 92 days to find a buyer.

·         Five bed (or more) homes in Boston - 187 days to find a buyer.

Drilling down into the numbers, it becomes apparent that Boston terraced/town houses are the quickest to sell when it comes to type of property and Boston properties with two-bedrooms sell the quickest.

The Current Boston Property Market Landscape

The present-day Boston property scene presents a mixed bag. An increase in listings compared to 12 months prior suggests a vibrant market, yet it must be remembered that there has been an increase in selling times, which hints at a shift towards a buyer's market (in 2022, it took an average of 46 days to secure a home sale, whilst, in 2023, it was 68 days). This nuanced change underscores the importance of strategic selling and investment approaches in today's climate.

 Understanding and adapting to these shifts is critical for those selling their homes. The proper presentation and pricing strategy can significantly enhance your Boston property's appeal, aligning it with current buyer preferences and market trends.

On the investment side, properties that have lingered on the market might represent hidden gems. These situations often allow for more negotiation leeway, potentially leading to advantageous deals.

As we enter Q2 of 2024, the Boston property market is ripe with opportunities. Sellers must be attuned to what resonates with today's buyers, leveraging insights on preferred property types and sizes to their advantage. Meanwhile, Boston buyers and buy-to-let investors can find value in exploring properties that have been on the market longer than average, where negotiation can yield significant benefits.

Expert Advice for Navigating the Boston Property Market 

In navigating the Boston property market, several strategies can prove invaluable.

For Sellers: Emphasise your property's unique selling points, be it location, size, or specific features. Ensure your Boston property is well-presented. Setting a realistic price based on current market trends and comparable sales will expedite the selling process.

For Buyers and Investors: Conduct thorough research to identify areas with high growth potential or market-undervalued properties. Consider properties others may have overlooked, as these can often be negotiated to a more favourable price.

For Everyone: Stay informed. My Boston property blogs and national property news can keep you abreast of local market trends and provide a strategic edge, whether you're selling, buying, or investing.

With its ever-shifting dynamics, the Boston property market presents many opportunities and challenges. For sellers, aligning with market preferences and presenting your property in the best light is crucial. Buyers and investors, on the other hand, should look for potential in less obvious places where patience and negotiation can unlock significant value. Navigating this landscape requires market knowledge, adaptability, and strategic action.

Whether you're looking to sell your cherished home or make a savvy investment, understanding the pulse of the Boston property market is your key to success. If you have any questions about what I've said in this or any of my articles on the Boston property market, please do not hesitate to contact us by telephone, email, direct message or text.

 

 

 

 

 

 

 

 

Boston Q1 2024

Property Market Report

 

In the articles on the Boston property market, we like to provide an insight into the real story of what is happening in our Boston (and national) property market and address the misconceptions that some of the ‘doom monger’ media have been spreading.

 

Despite almost daily reports of a housing market crash since September 2022, the data shows that the British (and Boston) property market is doing OK.

 

So, let’s dive into the stats and start with the life blood of the housing market – new properties coming on to the market.

 

Nationally, 444,668 UK properties came onto the market in Q1 2024.

(Q1 = Jan & Feb & March)

 

Interesting when compared to 407,946 UK properties in Q1 2023 and the 7-year Q1 average (2017 to 2023) of 403,105 new properties on the market.

 

New properties coming onto the market are a vital bellwether of the property market.

 

Why? Well in 2008, the number of properties coming on the market in Q1 was double that of 2007, this meant supply (number of homes on the market) vastly outstripped demand and hence economics dictated, and house prices fell.

 

The balance of houses coming on the market and how many sell determine what happens to property prices.

 

So how do you know if we are heading for another Boston house price crash as we did in 2008 or not, as the case maybe?

 

Let me share a quick and easy way to find out before anyone else.

 

Initially, perform a Rightmove search and write down the number of properties for sale every week. Next, carry out the same search, yet this time include sold subject to contract properties and make a note of that. The difference between the two numbers will show the number of properties sold subject to contract. The final step is to calculate the ratio between the first two numbers: i.e., what’s available versus what’s been sold.

 

If the ratio of sold property to available property rises monthly, the market is improving. If the ratio is falling, the market is slowing.

 

If you really wish to go deep into this; you could split the search into the property type (and bedrooms) you are selling and buying e.g., detached, semi, terraced/town house or apartments. This will help you to judge demand and supply and time the market to your advantage.

 

Next, looking at house sales nationally,

302,382 properties sold (stc) in Q1 2024.

 

However, the devil is in the data. Comparing previous years, in Q1 2023, 276,482 properties sold stc whilst the 8-year Q1 average (2017 to 2024 inclusive) is 304,363.

 

Obviously, the medium-term 8-year UK average includes Q1 2021, where 397,402 properties had sold stc and Q1 2022 when 341,888 properties sold stc. Both of those years were exceptional; however, when we compare Q1 2024 to the Q1 average of 2017/18/19/20, a more reasonable 282,488 houses were sold stc on average.

 

Next, I wish to look at what is selling nationally by price band.

 

·         35.4% of the properties that came on the market in Q1 2024 were in the up to £250k price band, yet 42.9% of the home sales (SSTC) were in this band.

 

·         41.0% of the properties that came on the market in Q1 2024 were in the £250k to £500k price band, yet 39.6% of the home sales (SSTC) were in this band.

 

·         13.4% of the properties that came on the market in Q1 2024 were in the £500k to £750k price band, yet only 10.7% of the home sales (SSTC) were in this band.

 

·         5.1% of the properties that came on the market in Q1 2024 were in the £750k to £1m price band, yet only 3.7% of the home sales (SSTC) were in this band.

 

·         5.1% of the properties that came on the market in Q1 2024 were in the £1m + price band, yet only 3.1% of the home sales (SSTC) were in this band.

 

Looking locally at the Q1 stats, starting with the number of properties in the Boston area (PE21) that came onto the market in Q1 2024 …

 

290 properties came onto the market in Q1 2024

in the Boston area.

 

The average price of those Boston properties coming to the market was £211,107.

 

The price range/band that saw the most listings was the £150k to £200k range, where 67 Boston area properties came onto the market (followed by the £100k to £150k range, where 63 properties came onto the market).

 

Now, looking at sales in Boston …

 

242 properties were sold in Q1 2024 in the Boston area.

 

The average price of those Boston properties selling was £195,183.

 

The price range/band that saw the most sales was the £150k to £200k range, where 61 Boston area properties were sold (followed by the £100k to £150k range with 53 Boston area properties sold subject to contract).

 

 

Typical first-time buyer properties are leading the recovery.

 

Although economic turbulence remains, the UK property market is gradually moving towards pre-pandemic activity levels.

 

Some of you might have noticed with the national listings and sales figures mentioned above, that the lower priced range of properties are performing better than the higher priced properties. For example, just over a third (35.4%) of UK listings were £250k or below, yet that price band accounted for over 1 in 2.3 house sales (42.9%).  Meanwhile, at the other end of the scale, 8.9% of listings in the UK in Q1 ’24 were in the £750k to £2m price band, yet only 6.2% of the sales were in the same band. In the £2m+ price range, even though the numbers are very small, the difference is quite startling, 1.3% of listings were £2m+, but only 0.55% of sales agreed were in the same range.

 

So, what does this all mean for Boston homeowners wanting to sell in this market?

 

Realistic pricing when you put your house on the market is everything!

 

In Q1 2024, there have been 198,682 price reductions on the 633,417 properties on the market.

 

In comparison, there were 243,602 price reductions in Q1 2023 on the 590,481 properties on the market and 119,068 price reductions in Q1 2022 on 424,796 properties on the market.

 

It is better to come on the market at a realistic price to start when the property is fresh to the market, than go on at a high price, lose that initial honeymoon period and then reduce it, only for some people to wonder what was wrong with the property.

 

The Boston property market is seeing stability and confidence return as it has now fully recovered from the turbulence at the end of 2022 when the Kwasi Kwarteng mini budget accelerated the speed of this slowdown.

 

Although higher mortgage rates and economic headwinds present challenges, many potential Boston home buyers, who were effectively sidelined in the fierce bidding wars of 2021/22, will find that a slower paced Boston property market gives them time to plan a strategy for their next move as we go into the traditionally busy post-Easter house buying season.

 

While the demand for quality Boston houses is still healthy, if the asking price is above the current market, sellers may need help finding buyers.

 

Determining a realistic price is crucial but not easy. Many sellers look at similar properties on property portals, but those prices may be over-inflated.

 

Estate agents have more tools at their disposal, such as comparing sale prices for comparable properties, £/sq.ft. and thinking about prospective purchasers in the market for the type of property under valuation.

 

Although getting the price right can be difficult, revising it downwards quickly is essential.

 

Boston homeowners should ensure that their property looks better value for money than similar properties. If you plan to trade up, it is good sense to sell at realistic prices, as you will gain substantial savings compared to moving in the last few years.

 

However, if you don't need to sell urgently, becoming a landlord could be an option - again I can help on that if needs be. Nevertheless, Boston homeowners-turned-landlords should consider that if property values do drift downwards in the coming 12/18 months, it may take a few more years after that to recover to those values seen last year.

 

Whatever the rest of 2024 brings, moving home should mostly be based on your circumstances and not solely on what is happening to Boston property prices.

 

If you would like an informal chat about your potential move without any obligation or cost, get me around for a chat. I promise I will tell you like it is, without any guff – then you can decide what is best for you and your family.