Onward and upward for the house price trend in Derby.

Last weekend I was asked to comment on Derby house prices at a property talk in Mickleover to a group of local landlords and investors. I did the research so I thought I would use it in this article!

In Derby, property prices are still 7% below the level that was achieved in the 2007 property boom (before it went pop in early 2008 with the credit crunch).  If Derby people sold their properties today, bearing in mind that the cost of living has increased by 19% over the last seven years too, the money they would get from the property would actually be 26%  lower (19% cost of living  + 7% below the 2007 boom), than if they’d sold in 2007.

Average Derby house prices are in a constant state of microflux. Over the last seventeen months, the trend has been in an upward  direction. The price of a typical Derby home increased by just 0.9% in July (yet dropped 0.6% in June and even stranger, still increased in May by 1% ).

Looking at monthly figures can be dangerous, so, I always look at the Land Registry  figures too which shows that the annual rate of Derby house price growth moderated in July to 4.1% from 4.4% in June.

The slowdown was not entirely unexpected, given mounting evidence of a moderation in activity in recent months.  Mortgage approvals declined by almost a fifth between January and May, and there has also been some softening in forward looking indicators, such as new buyer enquiries. But on the other side, with the labour market strengthening, landlords are looking for a home for their savings, mortgage rates are expected to remain low and with consumer confidence rising activity is likely to recover in the months ahead.

Rightmove have recently released some data on Derby and the immediate area, and they make fascinating reading. The peak of the property market last decade in Derby is recognised as November/December 2007. Whilst property values are still 7% lower than that boom, homeowner’s asking prices are 0.3% higher than the 2007 boom.  Therefore, there is an argument to say, some (not all) Derby asking prices are a little high but the price the properties are actually selling for, is a decent and reasonable figure. Remember, price is the amount someone is prepared to pay and not necessarily what someone thinks it is worth!

It all comes down to doing your homework, asking questions of the agent and the owners. Find out their motivation for selling and see if you can ‘bag that bargain’. Trust me, they are still out there. As we are not an estate agent, I can look at the whole of the market and give you an honest opinion on the investment potential of any property up with any agent. In fact, very soon, I will be starting to put on what I consider the best buy to let deals there are on to the ‘Derby Property Blog’;

If you would like to discuss anything further then please pop in and see me, send me an email or call me directly on 07977 235545.

CLICK HERE TO REQUEST A NO OBLIGATION, 

FREE RENTAL VALUATION ON YOUR PROPERTY.