Market resilience, record levels of demand and a new office are the order of the month in our Ayrshire market report for January. By Bruce Patterson, Managing Director, Corum Ayr
Another compelling year in the Ayrshire property market is behind us, so what do we take out of it especially given the media is dominated by the cost of living crisis, the war in Ukraine, rising interest rates and inflation?
In Ayrshire, it’s mostly good news. Across our Ayrshire branches, we completed a company record of over 650 sales during 2022 and compared with 2021, it was our most successful year by a margin. Not only that, but almost one in four of our customer’s properties were sold at closing date, resulting in some incredible sales prices and fantastic outcomes for our clients.
This incredible ratio of closing dates reflects how our experienced team systematically manage the sales process, which not only gives every buyer a chance to offer on every Corum property but also ensures our vendors always achieve the optimum sales price. Another positive the voracity of closing date activity provides is the security of a fallback position should, for any reason, the sale falls through.
The level of demand witnessed last year shows no sign of slowing; in fact, a recent survey of clients showed that 71% were determined to move in 2023. The question is, what is driving this demand? No doubt mortgage rates have risen but now appear to have stabilised, and strong employment figures reported the talk of a severe protracted recession seems premature. It’s a fact that not enough new houses are being built; therefore, the continued shortage of supply outstripping supply means good quality stock in key residential locations is always in strong demand.
It’s now three years since the beginning of the pandemic, and over this time, indebted consumers have rebalanced their finances. Government initiatives like the Help to buy Scheme have bolstered first-time buyers’ aspirations, and banks have relaxed lending criteria by increasing income multiples and reducing the amount of deposit required for a loan.
In addition, weaker exchange rates and stricter residency rules have encouraged those clients looking to buy second homes abroad to consider UK options; instead, however, in Scotland, this may be mitigated by the recent increase in ADS tax. Notwithstanding, continued low returns on savings accounts still exist, so this has meant downsizers are looking to release equity from larger family homes, so coastal areas have been beneficiaries of this trend.
Indeed, a significant proportion of successful buyers, nearly 55%, moved to Ayrshire over the last 18 months from outside the local area. Many buyers came from down South and overseas, although the majority of relocations were from the greater Glasgow area, Central Scotland, the East Coast and Edinburgh.
Many sales in key areas are still achieving Home Report and above, and as such, professional advice is as paramount as ever. Rather than be rushed into accepting an early offer, it is still imperative to consider experienced advice in order to allow your agent to manage the sales process properly, stay patient and allow enough time on the market for effective marketing and set a closing date.
In an undersupplied market, this strategy often yields the best overall result, not only in terms of price but also in the quality of an offer. As always, the price you pay is the value you receive, and it’s worth remembering that the cheapest agent is the one that achieves the best sales price.
Our new office opens soon and includes the latest in digital technology and internet marketing, so we are looking forward to showcasing our bespoke CRM system, which can access the largest database of buyers throughout the UK.
