Most of us have an interest in the property market. We want to know how well property is performing, especially if it is our own property or the property in our local area. We are interested in property values, whether it is because we own a home or are thinking of buying a new one. We have this warm feeling inside when we know our property value has increased. However, the feeling is not the same for those looking to get their first feet on the property ladder or possibly for those looking to buy another home. Knowing what is happening in the local property market is not only interesting, but can be crucial in giving you an edge – knowing where you stand financially and being informed of the true value of a property can be genuinely helpful.
So how is Cardiff property is performing? Over the last twelve months there have been 5,492 sales in Cardiff. This is significantly down on last year by 10%. The supply of property in Cardiff is poor and has been slowly declining. This low supply coupled with a high demand is what is keeping property prices steady. Although statistics are now starting to show that demand is also slowly slipping as mortgage approvals have dipped by around 5%. The average price of property in Cardiff is now £192,385 this is up around 3% growth on last year and up by a handsome 17% in the last five years.
What about the future? Cardiff’s population continues to grow, and it is estimated it will grow by 3% by 2020. It is also estimated that there will be an extra 80,000 people living in the Capital in the next 20 years and therefore the demand for homes should remain substantial. BUT do not let this fool you into thinking that property prices will continue to rise. According to Rightmove, UK house prices have held and even dipped -0.8% in the last few months. I personally do not believe we have anything to worry about as values will hold steady, but the time of rapid growth in property prices has passed – for now.
CF14 is a particularly strong area of growth for Cardiff with a 4% rise in the last year and huge 21% growth in the last 5 years, with the average price of £238,070 and detached properties at an average of £388,205. This is resilient despite recent Brexit anxiety and a snap election. In the last 12 months there have been 1075 sales in CF14 which is down 7% compared to 12 months ago and supply of properties in CF14 being sold is down 10 months in a row. That being said, buying a family home in CF14 will set you in good stead for the future, with semi detached homes in CF14 now holding an average price of £273,000 – significantly above the Cardiff average for semi detached homes of £216,000.
For the first time in more than 10 years, the Bank of England have raised interest rates. There is no need to panic, the new rate of 0.5% still remains the second lowest on record. So far this rate rise has not impacted on property values as the 0.25% rise is insignificant when you compare to the 8% decline in currency.