H1 2024 Premium Market Update
In my most recent article from June, I posed the question as to whether the snap election being called towards the end of May would impact the higher end of the market.
I shared insights from the likes of Nationwide, Hamptons, Knightfrank, and Dataloft highlighting that previous elections had not impacted house prices or market activity in the way that the public would expect them to.
I have now reviewed how the whole of the market reacted to the six-week campaign between the announcement of the election and the day of the Labour landslide victory.
As you can see from the above chart:
- New listings are on the up.
- Sales are on the rise.
- Sellers are realigning their pricing expectations.
- Sellers are sticking on the market and not withdrawing.
- Fall-throughs remained the same.
- More sellers are relisting their property.
The election has certainly not dampened the spirits of potential home movers and the market has responded positively.
I will be reporting further on what impact the first month of a new Labour government has had on the market in the next edition to be released in August.
In the meantime, I’m going to be reviewing the key statistics for the £1 Million+ market from the first half of 2024 compared to previous years to see how it continues to perform.
1.There were 19.17% more properties newly listed to the market compared to the same period in 2023 and this was 42.28% higher than the six-year average for H1.
2.There was a 22.28% increase in the number of properties for sale in comparison to the same period in 2023 and this figure was 38.47% higher than the six-year average for H1 as well.
3.The number of sales agreed rose by 17.29% when compared to the same period in 2023 and this was a 22.57% rise on the six-year average.
All of the above metrics significantly outperformed the whole of the market and is strong evidence that the higher end of the market continues to remain very resilient against tougher market conditions with an increase in new listings entering the market, more properties for sale, and a higher number of sales being agreed.
However, there were still some other metrics to consider at the higher end of the market as well:
1.The number of price reductions compared to 2023 were 18.60% higher and 55.83% up on the six-year average.
2.There was a 11.28% increase on the number of properties withdrawing from the market when compared to 2023 and this was also 31.45% higher than the six-year average.
3.The number of fall-throughs were 21.55% higher than the six-year average.
All of these figures were considerably higher than the rest of the market and highlights that whilst the premium end of the market is performing well, it is not immune to the difficulties impacting the whole of the market.
The above data presents both challenges and opportunities to those agents operating in the premium end of the market.
A higher number of price reductions, fall-throughs, and properties withdrawing from the market will cost agents more time, money, and energy.
In the first half of 2024, only 34.64% of listings at or above £1,000,000 have actually gone on to sell.
However, this creates an opportunity for agents to target the properties failing to sell with the number of £1 Million+ properties relisting up 31.83% in the first half of 2024 when compared to 2023.
I have written previously about how to best target properties for sale or those that have withdrawn at the higher end of the market.
Another tip to consider is to write an informative market update at the start of each month to these properties.
This could include such things as a report on the number of new listings, price reductions, sales agreed, prices achieved, and commentary on the wider market conditions.
Most agents will send out very generic letters at key dates such as reduced, fallen-through, and every few weeks saying to change agents.
By doing a monthly market update, you will be writing to high-end homeowners irrelevant of how long they have been on the market for and are much more likely to stand out from your competition.
The other thing to bear in mind is that exclusive properties want to be dealt with in an exclusive manner, so make sure to send out letters using high quality letters and envelopes, preferably with a stamp on it as well to make it feel less automated.
My bonus tip to end this article is if you are struggling to find the full addresses of these listings currently on the market, contact me directly and I will show you exactly how to do this from the comfort of your desk without having to lift a finger.
Thanks for reading.
Simon Gates - Opening The Gates
Get in touch with us
First Name*
Last Name*
Mobile Phone*
Your Email Address*
Are you looking to*
Please enter message here*
Please confirm that it is okay for us to contact you about this information as well as products and services. (You will always be given the right to unsubscribe at any point in the future)*
