Stone Real Estate: New build activity set to spike

Michael Lloyd

December 5, 2019

New build homebuyer activity is set to spike as December approaches, Stone Real Estate has found.

On average over the past five years, the number of new build transactions in December accounts for 11.9% of total new build transactions for the year.

In contrast, the number of existing homes sold during the last month of the year accounted for just 8.2% of all sales on average.

Michael Stone, founder and chief executive of Stone Real Estate, said: “The new build sector doesn’t come under the same seasonal strain when it comes to sales transactions when compared to the existing sector.

“This is largely because new build sales involve one buyer and on the other side of the coin you have a professional entity that continues to work right up until the Christmas break to get a sale over the line.

“This should be the case with any good estate agent, however, as there is no lengthy chain to deal with or any of the other complications that can come with an existing property sale, the process is all the quicker.

“As a result, when the December rush to complete before or just after Christmas hits, the new build sector is much better placed to facilitate a greater number of sales despite the shorter time frame.

“One common misconception is that Christmas is a great time to find a homebuyer bargain and while true to an extent, historically new build house prices tend to stand firm, and in many cases sit higher than many previous months in the year.

“That said, developers will often include some festive incentives to persuade homebuyers to take the plunge and this, of course, all helps favourably towards their end of year figures.”

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