As I have mentioned a number times in my local property market blog, with not enough new-build properties being built in Warrington and the surrounding area to keep up with demand for homes to live in (be that tenants or homebuyers), it’s good to know more Warrington home sellers are putting their properties on to the market than a year ago.
At the start of 2007 there were 990 properties for sale in Warrington but by July 2008, when the credit crunch was really beginning to bite, that number had risen to 1,850 properties on the market at a time when demand was at an all-time low, thus creating an imbalance in the local property market.
Basic economics dictates that if there is too much supply of something and demand is poor (which it was in the Credit Crunch years of 2008/9) … prices will drop. In fact, house prices dropped between 15% and 20% depending on the type of Warrington property between the end of 2007 and Spring 2009.
However, over the last five years, we have seen a steady decrease in supply of properties coming onto the market for sale and steady demand, meaning Warrington property prices have remained robust. A stable housing market is one of the foundations of a successful British economy, as it’s all about getting the healthy balance of buyer demand with a good supply of properties. Nevertheless, if you had asked me a couple of years ago, I would have said we were beginning to see there was in fact NOT enough properties coming on to the market for sale … meaning in certain sectors of the Warrington property market, house prices were overheating because of this lack of supply.
So, it is pleasing to note, looking at the recent numbers …
There are 1% more properties for sale in Warrington today than a year ago
There were 427 properties for sale 12 months ago, and today that stands at 432. It doesn’t sound a lot, yet this is a small step in the right direction to a more stable property market.