It is widely accepted that the warmer months in spring and summer bring with them spikes of activity in terms of the buying and selling of properties. A new piece of research has taken this one step further, however, and directly linked an increase in temperatures to increases in house prices.
The research conducted by a national estate agent firstly looked at seasonal differences in selling prices, and it comes as no surprise that the summer season posted the highest average selling price. In Winter 2018, the average selling price was £291,810 and this increased to £293,347 in spring time. Summer average sale prices increased once more to £301,321 and prices during the autumn period fell to £289,833.
With seasonal changes prevalent in terms of property pricing, it is the temperatures themselves which the research then looked into. The data shows a direct correlation between price decreases between January and February as the temperatures cool, and similar changes are recorded as both temperatures and prices consistently increase from February through to July.
When analysing the seasonality on a financial level, the research shows that selling prices increase by £2,150 for every single degree of temperature change. For every degree that the temperature increased, this represented an extra £1,461 in sold price; however, the drop-off in temperatures increased to £2,838 for every degree colder.
Fife Properties Group Office Owner, Jim Parker commented, “While it is often perceived that the summer time can produce higher prices, often this is due to the fact that sellers with higher-priced property come to market at this time of year and push this average figure up so we should not get hung up on seasonality. It is true that spring and summer tend to bring more people to the market, and it does go quicker because viewings can be undertaken quicker due to lighter nights. I always recommend it is worth getting the facts first before making any decisions on selling and that is what we are there for.”
Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/
