JANUARY 2024 ROUND UP OF THE HOUSING MARKET IN THE UK
We have seen a positive start to the year across the West Midlands. In Particular; Warwick and Leamington Spa have seen an increased level of interest and activity.
There are very positive signs that the market is hitting the ground running for 2024. Some of the key take aways so far this month are;
Average new seller asking prices rise by 1.3% (+£4,571) month-on-month to £359,748, the biggest December to January increase in prices since 2020, though average prices are still 0.7% lower than at this time last year
There has been some tentatively promising activity in the first week of the year, markedly stronger than a year ago, as more prospective buyers and sellers seem to have the confidence to get their 2024 moving plans started early:
The number of new properties coming onto the market for sale is 15% higher than in the same period last year
Buyer demand in the first week of 2024 is also 5% higher than in the same period last year. However, competitive pricing from sellers is still vital, with the number of new properties coming to market outpacing the rise in demand
The number of sales agreed is 20% higher than during the first week of last year, indicating a strong return of buyer confidence when compared with the unsettled post-mini-Budget period a year ago
Since Christmas, Rightmove has seen nine of its ten busiest days on record for people getting a Mortgage in Principle to see what they can afford to borrow, another early sign of movers getting their 2024 plans in place
The average 5-year mortgage rate is now 4.86%, compared to 6.11% at the July 2023 peak. While there may be more surprises to come, early indicators suggest a more stable year for the mortgage market after its volatility from September 2022 onwards
It is an early view of 2024 so far, however the buyer and seller activity has jumped compared to the same period a year ago, suggesting there is a return of confidence when compared with the unsettled post-mini-Budget period.
Estate Agents saw a 5% increase vs last year, in the number of potential buyers contacting about homes for sale in the first week of 2024.
It is very encouraging to see a 15% higher rate of properties coming to market vs last year. We can see this in the areas we cover, with plenty of new inventory coming to the Warwick, Leamington, Kenilworth, Solihull, Stratford and Oxford areas.
The most positive early indicator for 2024 is that the number of sales being agreed is 20% higher at the start of the year than in the same period last year. This also shows that many sellers are pricing attractively enough to tempt buyers who were hesitant to commit a year ago when the outlook for mortgage rates and buyer affordability was much more uncertain.
We are finding that sellers are outshining competition in the market for like for like properties when taking advantage of our services. For example, utilising our Home Staging service has seen a 55% increase in viewings from photography alone when testing properties with and without Staging.
The average 5-year fixed mortgage rate is now 4.86%, compared to the peak of 6.11% in July 2023. As some best-buy rates edge closer to 4%, and a first Base Rate cut since 2020 is expected later this year, there is overall a more stable backdrop for the mortgage market than at this time last year.
“After a stop-start market in 2023, the initial signs suggest a smoother year for movers in 2024. More new sellers are now entering the market, and with more confident pricing. While the increased level of buyer activity that we’re also seeing may justify some of this increased pricing confidence from sellers, it’s important that sellers who are keen to find a buyer don’t get carried away with New Year enthusiasm when setting their price expectations. Elevated mortgage rates and the wider cost-of-living squeeze are still limiting buyers’ spending power. Accurate and realistic pricing for their local area is the recipe for success for sellers looking to get moving in 2024, and it’s been proven that over-optimistic pricing makes a move much less likely.”
Tim Bannister Rightmove’s Director of Property Science
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