Amongst discussions I’ve been having with business owners in Hyde over the past few days, it’s been interesting to see a balance of individuals who are hoping for the property market to soar, but also those who are anticipating a fall.
A visible reason behind this will be in the desire to move up the property ladder, whereby a homeowner’s current cheaper property in Hyde is much less than the same percentage drop of the more expensive property they aspire to own.
Not only that, but Hyde homeowners will also be wanting property to be cheaper for their first time buying children when they eventually grow their own wings to fly from the nest. Even some of my landlords (who I know will be reading this, no names mentioned!) have been not-so secretly praying for the property market to drop so they can pick up a bargain or two for their buy-to-let portfolio (which as many of my regular video watchers will know, I am more than happy to help with this).
Flip the coin and on the other side are those who are hoping for Hyde property values to increase. These will be the individuals who have bought a property with a rather hefty mortgage, or those who have retired and are looking to downsize in order to have surplus cash left over after the move.
In order to understand where Hyde’s property market is going and whether or not it is likely to take a nosedive, we need to consider its past performance.
The last property crash, caused by the Global Financial Crisis, hit between Q3 2007 and Q3 2009, causing property values in Hyde to drop by 12.55%
The result is an average Hyde property of £142,950 dropped to £125,000.
A further drop occurred in 2015, deceasing Hyde’s property values from 2007 by 16.05% down to £120,000.
Yet looking to the modern day as depicted by the graph, Hyde’s property values are back on the climb. We’re far from undergoing another global financial crisis anytime soon (the factors that stimulated the original simply aren’t there anymore), so the only factor that could seriously implement the property market now is good old Brexit. But even recent resignations and doubts about the future are causing implications for that movement, so does this mean the Hyde property market is safer or destined for another crash?
Regardless of whether it happens or not, if (and that’s a big if) the property market were to crash again, similar to the levels as demonstrated during the financial crisis, Hyde’s property values would plummet even lower than their 2015 incarnation. A 12.55% drop in Hyde’s property values would lead to an average of £118,057. If they were to drop by the 2015 percentage of 16%? The average Hyde property would be valued at £113,400.
Over the coming weeks I’ll take a look at the exact same results for the other towns in Tameside, so be sure to subscribe to the blog if you’re interested in the findings there.
As always, if you are an investor in the Tameside or even North West property market and would like a second opinion on a property you have seen, drop me the URL of the properties you have seen online or if you would like to pop in for a chat, then you can either email on email@example.com or call on 0161 883 2525. The kettle is always on and I can even pull out the fancy biscuits!