If you were to take a stroll with me today around our area, we'd obviously grab a coffee somewhere along the route - and we'd chat about how the market locally feels comfortable. There's not a frantic rush of activity every 5 minutes, but there's not a stagnant hush either.
I spend my days looking at the numbers, but what those numbers don't tell you is the story of the families behind them. Like the couple I met last week who love the area but they're now looking to downsize now their family have moved on, or the young family finally finding a garden big enough for a trampoline in Locks Heath. The data tells us the level of market activity, but these people are why the market moves.
So what is a Balanced Market? Right now, the demand in SO31** overall is what we call a "balanced market."
Imagine you’re at a local school fair. A "seller’s market" is like the cake stall where 50 people are fighting over three Victoria sponges - competition for buyers is intense and prices go crazy. A "buyer’s market" is when there are 50 cakes and only three people hungry - stock levels are high and prices drop. A "balanced market" is when there’s a lovely spread of treats, and just enough neighbours have turned up to enjoy them without digging in the elbows.
Understanding Housing Supply The most important metric I track is the relationship between the number of properties currently for sale and the number of successful transactions. It’s a simple way to look at the balance of power: if every homeowner in SO31 stopped listing their homes today, how would the current stock levels meet the current demand?
Currently, the ratio of available homes to successful monthly sales stands at 10 to 1.
Last month, that ratio was just over 11 to 1, so the level of choice for buyers has tightened slightly! We’ve seen a shift of 1 in this ratio over the last four weeks. Even though a ratio of 10 technically leans towards having plenty of choice for buyers, the fact that it is narrowing shows that people are feeling more confident about agreeing a move.
The Local Counting Game We currently have 498 properties for sale across the SO31 postcode. To give you an idea of the volume of market activity, about 48 homes are finding new owners every single month.
Did you know that despite there being nearly 500 homes to choose from, the number of available properties actually went down by five this month? It’s a tiny nudge, but it shows that market activity is slightly outpacing the arrival of new instructions.
What does this mean for you? If you are selling your home in SO31**, you need to be mindful of the competition for sellers. Because there are 498 other options out there, your home needs to look its best and be priced sensibly to catch the eye of those 48 buyers moving each month. While the market is steady, a well-presented home is essential to stand out amongst the current housing supply.
If you are buying, you are in a brilliant position. You have the luxury of significant choice for buyers, allowing you to really explore your options without the pressure of a limited market. You have room to breathe and negotiate.
If you're selling and then buying, keep both of these in mind. I like to focus these types of moves around "the money in the middle" what you sell for and then buy for is of course relevant, but really important is the moving pot of money in the middle.
For my neighbours who are just curious about what their home is worth—the average price people are asking for is £451,507, though the price people have actually been paying over the last year averages out at £378,171. We’ve seen some jaw-dropping moves lately, like a beautiful spot on Brook Lane in Warsash fetching £4.9 million!
Whether you’re in your first home or a riverside mansion, the SO31 market is steady, fair, and provides a level of market activity that lets everyone make a move without unnecessary stress.