If the OL2 5 property market were a school sports day, we’ve just moved from the gentle three-legged race straight into a high-energy event. I’m Emanuele, and along with Michelle, we’ve been watching the moving vans criss-crossing our streets, from the leafy corners of Thorp to the busy pavements of Royton, and something big has just shifted regarding the available stock in our area.
Forget everything you heard last month about a "balanced" market where the ratio of buyers to sellers was even. We have officially tipped into a Seller’s Market, where the volume of active buyers is outstripping the current housing supply.
The Shift in Housing Supply
Imagine you’re at a bakery. Last month, there were enough loaves on the shelf to satisfy every customer who walked in. This month, the queue is out the door, and the number of loaves available for each person has dwindled.
In OL2 5, our level of stock relative to buyer demand has shifted significantly. We measure the balance of the market by looking at how much choice is available for buyers compared to the rate of market activity. That ratio has dropped from 7.7 down to just 5.9. Whenever that figure dips below six, the level of competition for sellers increases, as there are fewer homes available for the number of people looking to move. It’s a significant 1.8-point drop in the supply-demand balance in just four weeks!
More Choice, But Higher Competition
Surprisingly, we actually have a tiny bit more for sale than last month. There are 60 properties currently looking for new owners across OL2 5, compared to 58 in June. Whether you’re eyeing up a grand spot on Thornham Old Road or a family home in Woodland Park, there is variety in the properties currently for sale.
However, don't let that slight increase in choice fool you. Even though more homes are appearing, the level of market activity remains high, with an average of 10 sales agreed every single month. With a turnover rate of 17%, the current stock levels are being depleted by high buyer engagement. If no new properties were listed starting today, the current choice for buyers across Kirkdale Drive and the heart of Royton would be entirely exhausted in less than half a year based on current demand.
What does the "Price Gap" tell us?
Here’s a little secret for your next dinner party: the average price people ask for in OL2 5 is £269,652, but the average price people actually pay (based on the last 12 months) is £221,434.
Why the gap? It’s often because those high-end gems—like the beautiful homes on Thorp that recently sold for over £530,000—skew the "asking" numbers. But it also means that if you are a seller, pricing your home correctly to align with current market activity is the "magic sauce" that generates the intense competition for sellers we’re seeing right now.
What this means for you
If you’re thinking of selling: The wind is in your sails. Because the housing supply has tightened and the competition for sellers has increased, you are in a much stronger position to secure a successful result. There are simply more buyers looking at your home relative to the other options available.
If you’re looking to buy: Be prepared for a competitive environment. You aren't just browsing anymore; you’re navigating a market with limited stock levels. You might find yourself in a situation where three or four other people want the same front door key as you. Our advice? Get your mortgage paperwork ready to ensure you are in the best position to compete for the properties currently for sale.
If you’re just staying put: Smile! When market activity reaches these levels, it generally means your home is becoming a more sought-after prize, making your neck of the woods a very popular place to be.
Whether you're in the middle of Royton or on the outskirts near the hills, OL2 5 is buzzing. If you want to know exactly how this shift in housing supply affects your own front door, Michelle and I are always just a phone call away for a chat.