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Bath House Sales Up 14.5% on 2023 – What does this mean for the local market?

Posted on by prateek

The number of agreed UK property sales up to the 22nd of November 2024 is 18% higher than a year ago. Breaking this down further, as of 22nd November 2024, 1,009,340 homes were sold subject to contract (SSTC), an 18% increase from the number of homes SSTC in the same period of 2023. The average UK selling price has also significantly risen, reaching £361,000 compared to £326,000 in 2023, an 11% rise.

This doesn’t mean house prices have risen by 11%. Across the country, there has been a shift and more high-value properties have been selling this year compared to last. It is due to this factor that using £/sq.ft is a better judge of house price increase. The pound per square foot has risen only by 2.7% over the last year, climbing from £331 to £340 (which is in line with the major house price indicators).

A BUYER’S ADVANTAGE –

Sellers currently face a market where realism is the key to a good, and fast, sale. As of the 22nd November 2024, 2,061 Bath homes had been sold STC, a 14.5% increase from the 1,800 homes sold in the same period last year. The average Bath selling price has risen slightly, reaching £586,652 in 2024, compared to £562,066 in 2023 (a rise of 4.3%).

The £ per square foot on the homes sold STC for Bath has been £472 per square foot in 2024, compared to £482 per square foot in 2023.

In 2023, 59.64% of Bath homes that came to market were successfully sold (completed and exchanged). In 2024, that figure has slipped to 58.94%. This change reflects buyer expectations and affordability shifts, emphasising the need for careful pricing strategies. (Bath – BA1/2 – 1st Jan to Nov 22nd).

National figures showed that 52.96% of properties were sold (exchanged and completed) in 2023, only slightly improving to 53.62% in 2024.

If you think about it, you have just over one in two chances of selling if you put your home on the market; therefore, accurate pricing is more important than ever, but it isn’t the only factor. Homes that stand out in today’s market often do so because of exceptional marketing. Virtual or video tours, high-quality photography, and targeted social media campaigns are no longer optional—they’re essential. For sellers looking to maximise interest and achieve a strong price, presenting their property in the best possible light is a non-negotiable step.

BATHS UNIQUE MARKET DYNAMICS

Bath’s property market has always had its quirks, and this year has been no exemption. Different postcode areas are experiencing varying levels of activity. In some areas of the city (and villages), homes are selling quickly, while in others, buyers have more room to negotiate, whether on price, fixtures, or even completion dates.

This means that flexibility can be an asset for buyers. Expanding your search radius or considering properties slightly outside your initial criteria could reveal opportunities that others have overlooked. For sellers, understanding these local variations is critical to setting the right price and crafting an effective marketing plan.

A Balanced Perspective: The Seller-Buyer Dynamic

It’s worth remembering that over four out of five sellers are also buyers. This dual role often means that what might be perceived as a loss on one side of the transaction can be recouped on the other. A slightly lower sale price on your current property may open the door to negotiating a better deal on your next purchase.

External Factors Shaping the Bath Market

No property market operates in isolation, and Bath is no exception. National and global trends will inevitably influence it.

That said, Bath’s property market has shown resilience in the past, which is likely to continue. While challenges remain, stabilising mortgage rates and a steady economy offer hope for a more active market in the coming months.

Final Thoughts

As Bath’s property market moves into 2025, success will hinge on understanding the current dynamics and being prepared to adapt. For buyers, this means having your finances in order and being ready to act quickly when the right property comes along. For sellers, setting a realistic asking price for your Bath home ensures your property is effectively marketed from day one.

The journey requires a thoughtful approach, whether buying, selling or keeping an eye on the market. There are both opportunities and challenges ahead – but with the right strategy, the path forward is clear.

What’s your perspective on Bath’s property market? Have you noticed similar trends, or do you see things differently?

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

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BATH AND UK PROPERTY MARKET OVERVIEW FOR Q2 2024

Posted on by prateek

As property agents working in the wonderful historic city of Bath, we feel we must provide a comprehensive and realistic perspective on the market. Despite reports at the back end of 2022  that the market was expected to crash, the actual data reveals that the national and local markets are holding steady and have even continued to see substantial growth.

NATIONAL HOMES FOR SALE:

To better understand the current state of the market, we must look at the influx of new properties coming to the market. In the second quarter of 2024, 450,486 properties were listed for sale across the UK. This figure is higher than the 411,927 properties listed in Q2 of 2023, and the Q2 average of the last 7 years prior.

The average price of a UK property coming to market in Q2 of 2024 was £454,223. For comparison, the average price in Q2 of 2023 was £438,551.

NATIONAL SALES AND PRICE BANDS:

In Q2 of 2024, 308,969 properties were sold subject to contract (STC) in the UK. Much higher than the 269,989 properties sold STC in Q2 2023. This figure too is above the 7-year average of 299,324.

The average price of a UK property sold STC in Q2 204 was £369,373 compared to £367,030 in Q2 of 2023. Examining listings by band price also provides us further insight into the market:

  • 33.9% of new listings were priced up to £250,000, yet this segment accounted for 40.4% of sales.
  • 40.3% of new listings were in the £250,000 to £500,000 range, and 40.3% of sales were also in this price range.
  • 13.8% of listings were priced between £500,000 and £750,000, yet only 11.6% of sales occurred in this band.
  • 5.7% of listings were priced between £750,000 and £1m, yet only 4.2% of sales occurred in this band.
  • 6.2% of listings were priced £1m +, yet only 3.6% of home sales occurred in this band.

The data highlights that there is stronger performance among the lower-priced properties, indicating that affordability is driving the market.

MARKET DYNAMICS AND PRICING STRATEGY:

Pricing realistically from the outset is essential in the current market. In Q2 2024, there were 225,745 price reductions on the 673,973 properties on the market. This indicates that initial realistic pricing needs to take place to avoid subsequent price cuts. Price cuts can sometimes be necessary, however, it is advisable to avoid these price cuts as they often indicate that there is an underlying issue with the property and can deter potential buyers.

Overall, despite the continued higher mortgage rates and economic uncertainties, the Bath property market has now surpassed the sales levels pre-pandemic. Despite this good news, sellers should still aim to price their properties competitively to attract buyers where there are more homes for sale.

BATH PROPERTY MARKET SPECIFICS:

Locally, in Bath (BA1/BA2), 995 properties were listed in Q2 2024 with an average asking price of £694,857. In this local market, the most active price bracket was the £400,000-£500,000 range with the highest number of new listings at 151 properties coming to the market.

Sales in Bath during the same period totalled 720 properties, with an average purchase price of £599,053. As expected, the same price bracket of £400,000-£500,000 was the most active with 122 sales agreed.

CONCLUSION:

Ultimately, any house move is and should be primarily based on personal circumstances rather than just purely market conditions alone. So, if you are contemplating a move, then be sure to get in touch with the team here!

1 in 4 Bath Homeowners Unable To Sell

Posted on by prateek

  • The average time to find a buyer for a Bath property reduced from 72 days in 2020 to 66 days in 2021.
  • Yet just over 1 in 4 Bath homeowners are still on the market after 12 weeks.
  • Why are so many Bath homes still on the market after all that time, and what does it mean for the Bath property market?

If you had been living in a cave since the end of Lockdown No. 1, you might have still heard that the property market has been on fire in Bath (and the UK as a whole) for the last 18/20 months.

It has been very much a seller’s market, especially in 2021. Yet as we enter the second quarter of 2022, I have noticed a slight rebalancing of the Bath property market towards buyers, something that is good news for everyone (sellers and buyers) locally.

In 2020, it took on average 72 days from the average Bath property appearing on the property portals (i.e. Rightmove, Zoopla etc.) to the property going sold (STC).

Interestingly, Bath was bang on the national average of 72 days in 2020. Yet, last year, this was reduced to 66 days in Bath (51 days nationally).

Well, that was last year, and things have changed slightly since.

Of the properties for sale in Bath, 26.6% of houses have been on the market for more than 12 weeks.

That doesn’t sound a lot, yet that is an eternity in this market!

So, why are there so many properties on the market in Bath still for sale after all this time? It usually comes down to one thing… the practice of ‘overvaluing’.

So before I explain what overvaluing is, let me give you some background.

Many agents in 2021, were achieving top prices for Bath property with multiple offers becoming the standard. The property they were selling was only available to buy for days before the owner obtained multiple offers that were not only at a satisfactory level, but more than they ever dreamed likely.

Although this was great news for Bath homeowners, this caused fewer homes to come onto the market in the last six months in Bath, as people were afraid to put their home on the market without having a property to buy.

With fewer properties coming onto the market, some estate agents have become more and more desperate to get a larger slice of this smaller property market. It has seen an unwelcome side of the estate agency profession, the estate agency practice of ‘overvaluing’.

While ‘overvaluing’ is nothing new, the custom has been generally limited to a small number of estate agents. Yet now, it’s become more prevalent and creates uncountable distress and pressure for some Bath homeowners.

Many Bath homeowners want to sell quickly to get the property of their dreams. Yet, in many cases, when they do put their property on to the market, they don’t sell quickly enough because of this ‘overvaluing’ (even with the fantastic current property market conditions).

To give you an idea of the issue …

65.8% of Bath homes put on the market in the last 30 days have not sold.

There are hundreds of Bath families having their dreams dashed by ‘overvaluing’.

Therefore, let me look at exactly what overvaluing is, why it’s on the rise and most importantly, the harm overvaluing causes to homeowners like yourself.

You would think the most important thing in estate agency is all about finding the best buyer for your home, at the best price, who can make the move with the least amount of hassle.

To us it is, and to many other Bath estate agents, it is as well. Yet, to some agents, sales aren’t the essential objective. Instead, it is having a vigorous catalogue of properties to sell to generate more future leads.

Deprived of an endless number of new properties for sale, the enquiries estate agents receive will significantly drop, leaving them high and dry without any buyer (or seller) leads, the lifeblood of estate agents.

Therefore, some (not all) estate agents will feed on a homeowner’s appetite to get the highest possible price for their Bath home by giving them an over-inflated suggested asking price at which to market their property (i.e. ‘overvaluing’).

If one estate agent can get you an extra £30,000 for your Bath home, you will take it, won’t you?

The suggestion of pushing the asking price of your Bath home up by 10%, 15%, even 20% could be seen by many as a temptation too good to miss. Yet once you are on the market, the agent is trained to slowly get you to reduce your asking price over a lengthy sole agency agreement.

The problem is that the home of your dreams might have sold during the 3 months in which you have been reducing your price. Also, Which? reports in 2017 and 2019 proved you ended up getting less for your home when it did eventually sell (which means you lose money) and finally, the agents know homeowners perceive that it’s a hassle to swap agents (which it isn’t).

But estate agents only get paid when they sell the house; why do they overvalue?

Would it surprise you that some estate agency chains pay their staff a commission when they put the property on to the market, not when it sells? So, their team overinflate their suggested asking prices to get that commission.

Over the last 18 months, with the rising property market, there has undoubtedly been a valid reason for pushing the envelope on the asking price. Yet, if every house like yours is on the market or sold subject to contract at £300,000 to £320,000, yours isn’t going to achieve £355,000, let alone £375,000 – even in this market.

With 65.8% of Bath homes still for sale after a month, the market is starting to level out and if you are keen to sell, then let me give you some advice.

Beware the same practice from lettings agents

Nearly everything I’ve written in this article similarly applies to getting your property valued by a lettings agent. Many agencies secure instructions by quoting a high rental figure and tying their client into a lengthy sole agency period.

A couple of weeks later, the landlord will receive a phone call from their agent, saying that they must ‘listen to the market’ and reduce the advertised rent.

The landlord will eventually find their tenant, but weeks later than they should have done, and with an agency that was prepared to secure their business by deliberately overpricing.

Research has shown that if the asking price is initially set too high, it will be ignored by people surfing Rightmove and Zoopla.

(Come on, be honest – you have done that yourself haven’t you?)

When the property is eventually reduced because it has the stigma of being on the property market too long (begging the question from potential buyers or tenants that there may be a problem with the property itself hence no interest?), often when it does eventually let or sell, the owner will achieve less than it would have done if it were priced correctly from day one (as per the two reports from Which? in 2017 and 2019).

Of course, on the other hand, setting the asking price below its market value means potentially leaving money on the table needlessly – hence the need for a good agent.

Putting your Bath home or buy-to-let investment on the market at the right price from the beginning is the key to selling within the best time frame and for the best price to a serious and motivated buyer / tenant.

Ask a handful of estate agents to value your home, ask them to back up any valuation of your Bath home with cold hard comparables of similar properties to yours – ideally, properties that have actually sold, rather than ones that are languishing on the market at a high asking price.

Find your own comparables by searching ALL the property portals (i.e. Rightmove, Zoopla, Boomin, OnTheMarket).

If you only take away one thing from this article, when you search the portals for comparables, make sure you include under offer/sold STC properties, as that will triple the comparable evidence.

Thus, by doing your homework and then working with a dependable, trustworthy and experienced estate agent, who will help to ensure that your Bath property is put on the market to get you, the homeowner, the best price from day one without overcooking it so you don’t lose out, you will be just fine.

These are my thoughts, let me know if you have any yourself.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.