The budding trends in the property market as we head into spring

With spring just around the corner, the property market is showing signs of new life. After a traditional lull during the festive season, buyer demand is on the rise once again, however, there hasn't been much change in the economic environment that households must contend with. Interest rates remain stable, but they are still higher than most potential home buyers or those looking to remortgage would prefer. On a positive note, annual house price growth has returned to positive territory for the first time in over a year, providing a glimmer of hope for both buyers and sellers. As we head into spring, it's worth taking a closer look at the budding trends in the property market and what they mean for anyone looking to buy or sell a home in Tavistock and Okehampton.

Are house prices springing into step?

Nationwide's recent statistics indicate a 0.7% increase in the UK's average house price for February, marking a positive shift in the annual rate of change for the first time since January 2023. Year on year, there is a 1.2% elevation in prices, bringing the typical cost of a UK house to £260,420, disregarding seasonal adjustments.

Robert Gardner, Chief Economist at Nationwide, observed a 0.7% surge in UK house prices for February once seasonal influences were taken into account. This rise led to a jump in the annual rate of housing price growth, settling at 1.2% for February, a climb from the preceding month's -0.2%. He added that house prices remain approximately 3% under the record-breaking highs of summer 2022, after taking account of seasonal effects.
In terms of affordability, a decrease in borrowing expenses around the start of the new year seemed to catalyse a surge in the housing market. Realistic industry data signals a considerable upswing in mortgage applications at the year's commencement, backed by surveyors who noted an influx of new buyer queries.

Are things warming up for buyers?

Propertymark's most recent Housing Insight Report, accounting for January 2024, indicates a noteworthy 120% surge in the number of prospective purchasers venturing into the market compared to December. Despite activity being slightly elevated compared to 2023, it remains notably less pronounced than it was in 2022.
There has also been a rise in new supply, escalating by roughly 79% on December's nadir, with approximately 8 residences listed for sale per member branch in January. This is largely consistent with the activity rates observed in 2022 and 2023.

Post-Christmas, there is a bounce in the quantity of confirmed sales per member branch, soaring from roughly four in December 2023 to approximately six in January 2024. The figures for January align substantially with the performance observed at the corresponding junctures in 2022 and 2023, as per the data.

This month, a diminished number of agents reported properties being sold below the asking price, contrasted by a rise in properties selling at or exceeding the asking price. Nevertheless, there persists a misalignment between valuation estimates and market anticipation.

Agents are positive things are getting better

GetAgent's latest research has brought to light the optimistic outlook of the majority of UK estate agents as they head into the coming year. Despite potential challenges, they believe the housing market will maintain its stability, though they stress that sensible pricing is integral to achieving this stability.
This newly commissioned study, which collected the perspectives of approximately 600 estate agents across the UK, revealed that 55% are positive about the market's prospects for 2024.

Increased mortgage rates remain the top concern for these agents as they contemplate the forthcoming year. They also indicated wider market uncertainty and stubborn inflation as additional hurdles to overcome. However, concerns about reducing house prices and slower activity from both buyers and sellers were considerably less pressing.

On that note, 40% of the agents expect house prices to remain steady through 2024, while an additional 29% even foresee a price rise. Survey results show that 18% of agents have observed an uptick in new seller enquiries in 2024 compared to the same time frame the previous year, while 39% claimed they were just as occupied now as they were at the same time last year.

It’s worth highlighting that 2023 posed significant challenges to the property industry, with many of these hurdles emerging towards the year's end. So, even though a significant number of agents claim to be just as busy as they were at the beginning of 2023, it's conceivable they have experienced an upturn in activity compared to 2023's latter half.

Are you ready to move?

Optimism appears prevalent for 2024, although it’s evident that potential buyers continue to proceed with caution due to higher borrowing expenses. Only you know if you are ready to think about selling your Tavistock or Okehampton home and when you are, give our team at Miller Town and Country a call.