As usual, the media are up to their usual tricks of ‘click- bait’ headlines using phrases such as ‘gloomy outlook’ and ‘house price cuts hit highest level in years’ but what is the real story?
Let’s not forget, we have just experienced one of the biggest property booms in years, following the stamp duty holiday, introduced when the market re-opened in May 2020. There was a frenzy of property sales with buyer demand suddenly outweighing supply with most properties receiving multiple offers, pushing agreed sale prices up. That had to end at some point, didn’t it?
So what is happening right now?
The good news is;
Rightmove House Price Index for July 2023 reports;
The price of property coming to market falls by an average of 0.2% (-£905) this month, marginally below the 0% norm for this time of year.
Buyer demand remains resilient, being 3% higher than 2019, with agents reporting that right-priced homes are still attracting motivated buyers due to a shortage of property for sale compared to historic norms.
Kim Kinnard, the director of Halifax Mortgages says;
“In reality, prices are little changed over the last six months, with the typical property now costing £285,044, compared to £285,660 in February. The pace of annual decline also slowed to 2.4 per cent in July, versus 2.6 per cent in June. These figures add to the sense of a housing market which continues to display a degree of resilience in the face of tough economic headwinds.
In particular, we’re seeing activity amongst first-time buyers hold up relatively well, with indications some are now searching for smaller homes, to offset higher borrowing costs.”
The not so good news is;
With England’s base rate rising again, the average rate for a 5-year, fixed rate is 5.69% (85% Loan to Value), is causing some buyers to delay their purchase and wait to see if these rates reduce.
The number of sales agreed in June 2023 was down by 12% on June 2019 which was to be expected given the above.
So what does this mean for property sellers?
If you are planning to move soon, whether that be a need or want, all is not lost!
The demand for property is still prevalent, especially in the South Lakes. The important bit- pricing right! With the current market conditions, it is important to remember that the circumstances of most buyers have changed, whether that be their affordability or the fact that they are being more cautious, before making an offer (or even booking a viewing). Pricing your property at the right level, is key to making sure you get all important sale. Not only that but making sure your marketing material reflects the right buyers. Do you have a property perfect for a growing family? Or an apartment with included maintenance, ideal for second home buyers? Make sure the photos and property description shout about all of the best bits.
Having an experienced, knowledgeable agent should also be top of your list. Agents who can negotiate the best possible price for you whilst also providing a second to none service to both you and your buyer/potential buyers will minimise the risk of a sale falling though and speed up the transaction.
If you are thinking of selling your property, contact us on either 01539 725582 or 015395 64600 for a free, without obligation conversation about your property sale.
Sources;
Rightmove House Price Index 2023;
https://www.estateagenttoday.co.uk
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