Focusing on average property values for an area is obviously only going to give you a general guide to prices across the whole spectrum of properties that are being sold. There is also a clear difference between average sold prices in Chelmsford and average asking prices in Chelmsford. One can be going up whilst the other one is going down so as a starting point you need to be aware of the difference between the two measurements.
Having said that, in 2023 there are very different opinions on what the true value of an individual property is. From a sellers perspective they have seen strong house price growth and a high demand to buy for the last few years since the end of the COVID lockdown period.
This flood of buyers and shortage of supply of properties for sale helped to push up asking prices and therefore sold prices as well. Since mid 2022, there have been bigger economic changes such as rising interest rates which have helped to reduce the demand from buyers and simply made it more expensive to get mortgage than had been the case for the previous few years.
Currently you might have a seller who is paying a fairly low mortgage rate and are quite comfortable with that figure but if a buyer comes along and they want to get a new mortgage currently it might be twice the rate that the seller pays. This will have an effect on the price they would be willing to pay for that property due to the cost of the mortgage that they are going to be asked to pay. If the seller is simply ‘happy to sell’ but not ‘committed to sell’ then we can find that there is a difference between the price that the buyer is willing to pay and the vendor is willing to sell at.
So what is the value of property in 2023? – ultimately it is the same as it always has been. It is the price that someone is willing to pay for it assuming all other things are equal. With buyers and sellers potentially looking at things from a very different persepctive it can make finding a price that all parties accept difficult however when both parties are committed to the deal then that is when a suitable compromise can be found.
In any market, you always need an Estate Agent that recognises these differences and is able to achieve the best outcome for all parties involved. Agents are instructed by the sellers so they are working in their best interests and that is often when communication is key and understanding the bigger picture helps to recognise when the correct decisions need to be made.
If you are thinking of buying or selling in the Chelmsford area and want to talk to us about your own circumstances and requirements, then we would love to hear from you. 01245 830003.