A Tale of Two Rugeley...

Key Trends in the Rugeley Market (2019-2024)

1. Pre-COVID Stability:
   From January 2019 to February 2020, the market was stable. On average, there were 357 homes for sale and 67 homes sold each month, suggesting a healthy balance between supply and demand.

2. COVID Impact:
   When the pandemic hit in early 2020, home sales dropped dramatically. Uncertainty made many buyers pause their decisions. However, once restrictions lifted by May/June 2020, the market rebounded quickly, driven by pent-up demand and government incentives like the stamp duty holiday.

3. 2020-2021 Boom:
   Between May 2020 and December 2021, home sales in Rugeley averaged 78 per month, peaking at 112 sales in a single month. Despite fewer homes for sale—reaching a low of 139 homes in December 2021—demand stayed strong due to factors like the stamp duty holiday.

4. 2022 Normalization and Shocks:
   Early 2022 saw the market returning to normal. However, after the summer, two events hit the market: the Truss Budget in late 2022, which caused home sales to drop to 46 per month, and rising interest rates in summer 2023, which led to further dips in sales.

5. 2024 So Far:
   Since January 2024, home sales have averaged 64 per month. Meanwhile, the number of homes for sale has risen to 360 by August 2024, marking a significant increase in available properties.

Market Insights: Supply vs. Demand

The second graph highlights the percentage of homes sold relative to those available, showing key trends:

• 2020-2021 Surge:
  During the pandemic, a high percentage of available homes (40-50%) were being sold quickly, driven by demand.

• Post-2022 Decline:
  As the market shifted in 2022, this percentage dropped to the late teens and early 20s, indicating that fewer homes were selling as a proportion of those on the market.

What Does This Mean for Sellers?

Rugeley homeowners now face increased competition as the number of homes for sale has doubled since mid-2022. While buyer demand remains strong, it hasn’t risen as fast as the supply of homes, which could lead to longer times on the market and downward pressure on prices.

To secure a sale in this environment, pricing becomes crucial. Overpricing could leave a home unsold for months, while a competitive price may attract buyers quickly. Keep in mind that homes selling faster are more likely to see their sales go through without falling apart. Data shows that if a UK home sells within 25 days, there’s a 94% chance of completing the sale. After 100 days, this drops to just 56%.

Conclusion

The Rugeley market is still active, but with more homes on the market, sellers need to be realistic about their pricing. A well-priced home will sell faster and with fewer complications. Paying attention to market trends and setting the right price is essential to navigating this changing landscape.