How much do the seasons affect property prices?

How much do the seasons affect property prices?

Estate agent comparison website, GetAgent.co.uk, has been crunching the numbers and looked at the seasonal impact on property transactions, sold prices and the premium carried by seasonally influenced road names.

The firm looked at the change in transactions and sold prices across each season last year, as well as the current sold prices for road names with a seasonal twist to have sold so far this year.

According to the figures, last year the average price for property transactions was at its highest during the summer months at £265,546, up 20.5% from the spring average of £220,366.

While Brexit uncertainty has seen property prices stutter for much of the nation, there could be more bad news on the horizon and more than a cold snap in the weather as we head into Autumn. Last year, the average sold price dropped -7.7% between the summer and autumn months to £244,984 and the market froze further during the winter months with a -17.4% fall in sold prices. Transactions also dropped -1.8% between summer and autumn and -1.1% between autumn and winter.

With Brexit still a factor, it looks as if things may get worse before they get better for UK home sellers.

The bright side?

While the autumn and winter months aren’t great for the market as a whole, they could see home sellers with seasonal road names quids in. So far this year, road names containing winter in them have seen property sell for an average of £284,741, considerably higher than the national average. Autumn ranks second with an average sold price of £281,380, closely followed by summer at £280,576, with spring ranking the lowest but still at a notable £263,146.

Colby Short, Founder and CEO of GetAgent.co.uk, commented: “While the dark clouds of political uncertainty continue to overshadow the health of the UK property market, seasonal trends show that prices and transactions are due to dip even further.

Seasonal swings are a factor that influences many different areas of business, not just property, however, when coupled with an already uncertain landscape, they can make mediocre market conditions seem a lot worse than they really are.

While home sellers won’t welcome an even tougher time to sell and for the price that they would like, those with the Brexit silver bullet of a winter of autumn related road name should be able to defy the doom and gloom to secure a good price for their home.”

 

Warren Lewis | PROPERTY REPORTER

24th September 2019