According to a new report from leading Essex estate agency group, a surge in demand fuelled by cheap mortgage rates, economic recovery and government support has seen a sellers' market, where homes are being sold for an average of 98% of their asking price.
The report also shows that the number of buyers chasing each property in the first quarter hit its highest level since 2007, with an average of 12 buyers for every property for sale.
Properties in Hornchurch and Romford are achieving 99.8% of their asking price; Basildon is achieving 98%; Chelmsford is achieving 97.5%; and Brentwood is achieving 97.3%.
Mike Low, Director of Balgores Property Group commented:
“Prices in Essex have rocketed over the past year with just one in 100 properties being bought through the Government's loan scheme. While Help to Buy may be the icing on the cake for the resurgent property market, it is not necessarily driving the bounce back in prices as much as some suggest.
Cheap mortgage rates, renewed lending from banks and building societies and a jump in confidence in consumers are the main forces behind the market bounce. We are seeing unprecedented demand for properties in some parts of Essex and there is a growing trend of several buyers bidding on properties, driving up the sale price.
Figures from the ONS showed house prices rising almost five times as fast as wages, with a 6.8% rise in the average property value compared to a 1.4 per cent rise in earnings. In total, 17,000 households bought homes under the Government's Help to Buy scheme in its first nine months, according to recent figures.”
Recent Examples of Property Sales:
Rutland Road, Chelmsford, Essex: Property came on at £190,000 which was more than the highest valuation of three agents. Balgores Property Group held open day and had 35 viewings and six offers and achieved £212,000
Brights Avenue, Romford, Essex: The property was put on the market for £230,000 sold for £225,000 in December. Purchaser withdrew due to financial reasons. Balgores Property Group marketed the property and organised an open day for the following Saturday. The open day resulted in 20 viewings and several offers all above the asking price the property ended up selling for £241,500.
Cherry Tree Lane, Rainhan, Essex: The property came onto the market for £250,000. Balgores Property Group organised an open day for the following Saturday, as a result if the open day there were 15 viewers and six offers = the highest offer was £260,000 which was £10,000 above asking price.
