When it comes to buying or selling houses in Birmingham, what can you expect? No matter what position you find yourself in (or both if you are trying to accomplish two transactions at the same time or as close as), it is important to have an understanding of the underlying market.
Now, it is no surprise that, in the UK as in most of the rest of the world, the market has taken buyers and sellers alike on a wild ride. What is happening now? And if your interest is in houses in Birmingham specifically, what do you need to know?
Average Price of Houses In Birmingham
Buyers and sellers alike need to be aware of the prices being asked for and received on the open market. According to Rightmove, the UK’s largest online real property portal, the average selling price of houses in Birmingham was £256,167. This breaks down by property type as follows:
- Average for semi-detached houses: £264,071 (these accounted for the majority of sales last year)
- Average for terraced properties: £212,446
- Average for flats: £151,649
These price points represent an 8% increase from 2020 (which had an overall average of £237,739) and are similar to those of 2021.
This year, however, experts predict that housing prices will drop (mostly) across the board. We expect this to be true of many areas in Birmingham as well. What is happening is that prices are falling in the areas where they rose the fastest – the ones that featured higher-end and luxury homes. Markets that featured more affordable homes are holding more steady.
According to the latest data, a quarter of homes on the market have adjusted with price reductions. In fact, sellers “adjusted expectations,” so to speak and are accepting an average of 3% below asking. Compare this to 2021 and most of 2022: sales prices were routinely at or above asking. In some cases, thanks to bidding wars, they were well above. Discounts are expected to continue and widen this year.
As mentioned, market “hot spots” have seen the most marked decreases. Sales have dropped by up to 50% in places like Wales, the East Midlands, and Southern England (excepting London). At the same time, housing stock has increased by about 40% compared to the previous year.
Is Now the Time?
Many buyers believe they must “time” the market. That is, they must wait until conditions are most advantageous in order to make their move. Literally and figuratively. While it can be helpful to accelerate your process or hold off a bit given conditions, waiting for the planets to align, as it were, may not be desirable or even possible.
The reality is, if you want to buy, there is a way. If you want to sell, there is a way. The key is finding the way that works best for your needs, goals, and budget. For example, if you want or need to sell your house on a stricter timeline, it can be stress-inducing and challenging to wait to find a buyer, wait for the inspections and valuations, wait for financing to go through, wait for closing… That’s a lot of waiting for a process that may fall through at any link in the chain.
Alternatively, however, sellers may consider working with a cash house buyer. Unlike a traditional buyer, who needs a mortgage, these buyers have the capital to make purchases on a vastly accelerated timeline.
Another key advantage is that these buyers will purchase properties that are in as-is condition. In other words: they assume risks that traditional lenders will not, such as damaged foundations, subsidence, faulty roofs, etc. You will not have to undertake extensive – and expensive – repairs, upgrades, and improvements just to list your house (expenses, it should be noted, that you will likely not recoup in the sale of your home).
Perhaps the biggest benefit for people on a schedule is that the entire process can be completed within days instead of the months (or longer) that is typical in a conventional sale.
While tracking average prices of houses in Birmingham can be informative and a valuable part of your strategy, buying or selling depends on more factors than that. They include your personal needs and goals and how quickly you need to work to complete a transaction.