What's really happening to property prices in Coventry and Warwickshire in 2014? Kate Faulkner is interviewed by BBC presenter Shane O'Connor.
Kate researched property prices for the morning show on the local Coventry and Warwickshire BBC Radio.
According to Kate's latest figures, analysed from the Land Registry: "enjoy the current market, it's absolutely ideal!".
The ideal property market in Kate's eyes is one which increases a bit more than inflation, so anyone owning their property outright will see it grow in real value, not just nominal, ie above 3% each year.
"An ideal property market is one which grows around 5%" says Kate. "This means there is always an incentive to buy, but not too much pressure price increases of 10 ot 20% would place on buyers."
In Coventry, on average since 2000, through a boom and a bust, property prices grew around 5% every year, so well ahead of inflation.
Currently, Coventry property prices are growing at around 4% a year, according to the Land Registry. And they are good value for money, as they are still 14% LOWER than they were in 2007. This will make it tough for some to sell as they may well be in negative equity, but for first time buyers, it means they can buy at a discount versus previous years and be relatively safe in the knowledge property prices are on their way up.
In Warwickshire, on average since 2000, property prices have grown by 5% every year, so a good performance versus inflation of around 3% a year.
Currently, Warwickshire property prices are increasing at around 3% a year. They are good value as they are still 7% BELOW what they were at the market height in 2007/8. It's likely most property owners will be out of negative equity by now, so there's nothing stopping them putting their properties on the market if they fancy trading up or down.
First time buyers are in a good position in the area to secure a ready made bargain, and be as sure as you can be the property prices will go up, so good news all round.
What would a bubble look like in Coventry and Warwickshire?
Well a normal market is anything from 5-7% price growth a year. In the 'bubble years' we saw, via the Land Registry, prices going up year on year by around 25%, so nowhere near that at the moment!
What would a crash look like in Coventry and Warwickshire?
During the credit crunch, property prices dropped quite a bit - by 17-19%, so bear this in mind when you are buying, it means an ideal deposit would be around 20%, but for first time buyers that won't be possible, so buying in a market where property prices are on the up is worthwhile thinking about.
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