Impact of the Brexit Vote on House Buyers & Sellers in Yorkshire
Welcome to my 2 weeks Post-Brexit vote market update.
We've chosen to do our market updates a little bit more frequently because we've been getting so many enquiries from so many of you about exactly what's going on in the market place at the moment - is it a good time to sell? Is a good time to buy? Those sorts of questions.
Housing market confidence
So the first thing I would say is that the changes which we've seen have not been anywhere near as dramatic as we expected. People's decisions to buy and sell have been relatively unaffected, but two trends have definitely appeared: A difference between the (geographic) areas which were predominantly Leave supporters and the difference in areas which were predominately Remain supporters.
If you think about it a market is predominantly driven by confidence, it's driven by your expectation of what you think is going to happen next. If you put yourself into the mind of someone who voted leave then clearly their expectations that life outside the EU is better than life inside, therefore the decision to buy or sell is unaffected. Equally if you voted to Remain then potentially you may feel that life inside the EU is better and therefore maybe there's something to fear outside of the European Union.
Areas where the majority are Pro-Leave
So if we pick up with Doncaster as a starter, this was the most strongly Pro-Leave area that we have within the Preston Baker business. 69% percent of all voters voted to leave and we've seen a doubling of the sales rate of properties in the past two weeks - so twice as many sales in comparison to the number of listings that we would normally expect which is really interesting.
The next biggest area which voted leave was Selby and they've agreed 13 house sales in the past two weeks, fifty-nine percent of the customers voted to leave and actually the number of sales are currently outstripping the number of new houses coming onto the market which again is the only branch within the Preston Baker group where that's currently happening. So again in Doncaster and Selby we've seen really big surges in sales activity.
Areas where the majority voted to Remain in the EU
In terms of the areas which voted to Remain in the EU - the strongest Remain area was York with 58% percent of the vote to remain and we've actually seen the number of new sellers coming to the market (new listings) increase dramatically.
We've listed 18 new instructions over the past two weeks in York, but the proportion of those which have sold immediately has decreased. Now partly if you suddenly increase supply, demand often takes a little while to catch up, but after these first two weeks since the Brexit vote that balance has definitely shifted in favour of buyers rather than sellers. Equally we've seen similar aspects in North Leeds with good numbers of listings - 25 over the past two weeks! But actually the proportion of those which are selling is marginally lower than we were experiencing before, and then finally South West Sheffield and similar picture in North Leeds.
So that's the picture so far! It's still really early days to try and make any firm judgments or assessments about what's going to happen, but what I can tell you is that houses are selling in every area where we trade. Certainly the areas which are doing really well and where we have seen an improvement are Selby and Doncaster and the areas where we have maybe seen a slight shift towards buyers have been more Pro-Remain areas.
I’ll do another update in a couple of weeks time hopefully with some more data to be able to share with you.
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