Devon Property: Q3 Market Update

Devon Property: Q3 Market Update

Recently released data sheds light on the current state of the property market, so how is the property market for Q3 2019 in Devon looking and how does it compare to the UK average?

According to the latest Halifax House Price Index (HHPI) annual house price growth has slightly slowed this quarter and on a monthly basis, house prices have fallen by 0.4%.

But it's not all doom and gloom. House prices in September 2019 were found to be 1.1% higher than in the same month in 2018 and in the last quarter (July to September 2019), house prices were 0.4% higher than in the preceding three months (April to June 2019).

Although this is the lowest level of growth recorded since April 2013, it’s normal for property prices to improve during Q3 of the year, so it’s encouraging to see the market has returned to a more normal pattern of seasonal property sales, despite the on-going uncertainty surrounding Brexit.

In fact, experts say that the property market has been relatively stable over the last few years, which perhaps bodes well for the future. The number of mortgages approved has continued at a good pace, helped along by the low cost of borrowing.

According to the HHPI figures, the average house price in the UK now stands at £232,574. It's interesting to note that figures from Plumplot indicate that the average house prices in some areas of Devon are higher than the national average, which is great news for homeowners. For example, in the Torquay area the average property price currently stands at £270,000, with the price having increased by £1,700 over the last year.[1]

Looking at recent sold house prices, a property in Torbay was the most expensive sold in the whole of Devon during August 2019, achieving a sale price of £2.25m.[2]

Elsewhere in Devon, North Devon has seen a 15% growth year on year and West Devon is up 9%.[3]

With Devon being the third largest county in England, and boasting plenty of strongly desirable coastal and country property settings, it's perhaps not surprising that sales are stronger than other areas of the UK. It’s hard to predict exactly how the market will change in the year to come, but the benefits and popularity of the location will remain constant.

Although we might not be seeing the high growth in property value that we’ve seen in the past, neither are we currently seeing a massive downturn in property sales or costs either – something that some people predicted would happen as soon as the referendum results were in.

There’s no doubt that the market has slowed down from its previous highs, but some experts believe it’s a natural process of levelling off, from unrealistically high growth in the past that couldn’t be sustained on a long-term basis.

Whatever happens with Brexit, and whether we leave with a deal or no deal, let’s keep things in perspective - people still need houses, property is still being purchased and tenants are still renting properties.

If you’re thinking of buying or selling property in the Torbay or Teignbridge areas and want advice or to book a valuation, contact us today on 01803 367191.