The Lancaster property market (LA1 and LA2) has seen significant shifts over the last few years, with a doubling in the number of homes available for sale since mid-2022. This highlights the need for homeowners to adopt realistic pricing strategies to attract buyers and secure timely sales.
Lancaster Market Trends (2019-2024)
From January 2019 to early 2020, Lancaster’s property market (LA1 and LA2) was stable, with around 917 homes available and an average of 120 homes sold each month. This balance between supply and demand indicated a healthy market.
However, the COVID-19 pandemic brought a dramatic change. Property sales dropped sharply in April and May 2020 due to uncertainty. But once lockdown restrictions were lifted in mid-2020, the market saw a significant surge. Nationally, the number of homes coming onto the market increased by 27.1% above the seasonal average. In Lancaster, between May 2020 and December 2021, an average of 149 homes sold each month, despite a steady drop in the number of homes for sale, reaching a low of 382 in December 2021.
This period of high demand and limited supply was fueled by pent-up buyer demand and the government’s stamp duty holiday, which incentivized people to move quickly.
Market Correction in 2022 and Beyond
By the first half of 2022, the market seemed to be normalizing, with both sales and the number of homes available gradually increasing. However, the market was hit hard later that year, first by the economic uncertainties following the Truss Budget, which caused home sales in Lancaster to drop to an average of just 87 per month, and later by rising interest rates in mid-2023. Despite these challenges, home sales recovered to an average of 118 per month in 2023.
As of August 2024, home sales in Lancaster are stable, with an average of 121 sales per month. However, the number of available homes for sale has jumped to 905, signalling a shift in the balance between supply and demand.
The Changing Balance Between Supply and Demand
The rise in available homes could be attributed to a combination of factors, including homeowners trying to take advantage of high prices, new builds entering the market, and unsold properties being relisted. This increase in supply presents challenges for sellers, as more competition could lead to homes staying on the market longer and a possible decline in prices.
A closer look at the data reveals a telling trend: between 2020 and early 2021, the percentage of homes sold each month in Lancaster reached as high as 35%, indicating a seller’s market with high demand. By mid-2022, this percentage had fallen to the mid-teens, signaling a more competitive market for sellers.
What This Means for Homeowners in Lancaster
For Lancaster homeowners, the key takeaway is the need for realistic pricing. The number of homes for sale has doubled since mid-2022, while buyer demand has remained steady. Sellers who price their homes too high risk having them sit on the market for extended periods, reducing their chances of closing a sale. On the other hand, homes priced competitively are more likely to sell quickly.
Research shows that a home sold within 25 days has a 94% chance of the sale going through to completion. However, homes that stay on the market for more than 100 days have only a 56% chance of reaching completion. This underscores the importance of setting an attractive price from the outset to avoid prolonged listings and the associated risks of a sale falling through.
Conclusion
The Lancaster property market is still active, but the growing supply of homes means sellers face stiffer competition. Homeowners who want to sell successfully must pay attention to market trends and price their homes competitively. Realistic pricing will be crucial in attracting buyers and avoiding the pitfalls of lengthy listing periods. While the market remains healthy, with steady sales, the balance between supply and demand is shifting, making strategic pricing more important than ever.
What are your thoughts on the market currently? We would love to know.
Thanks for reading
Michelle
