You may be wondering how the Housing market is at present.
The average asking price of property coming to the market in the UK dropped by 1.1% this month, which despite the weight of financial uncertainty is in line with the average 1.1% drop recorded in November during the pre-pandemic years of 2015-2019.*
The proportion of properties seeing a reduction is only slightly up on pre-pandemic levels, though a slowdown in activity from early 2022 and last year’s frenetic market has led more sellers to be willing to reduce their asking price to agree a quicker sale.
For some months, we have been forecasting that the heady days of offering 15-20% more than the Home Report Valuations would come to an end at some point and so it seems to be here or nearly here now. (Although competition for certain individual properties will still occur.)
Surveyors are saying that although the Home Report values are not yet under pressure to be reduced, however, when considering comparable sales where previous buyers paid significantly over the mortgage value in the HR, they must be sensible in their approach.
While the increases in all living costs and rising mortgage rates will harm House Sale Prices, the shortage of properties on the market and the demand to buy in our area from buyers all around the country may help to keep prices healthy.
Those who foresee a significant property downturn should remember that one of the main causes of the last major crash in 2008 was that the banks had their available funds wiped out and were unable to offer mortgages to any significant level. This is not the case at present, and mostly the banks are liquid and eager to lend. Although borrowing is more expensive than of late, interest rates have been historically low for the last ten years and many will remember when 8-10% was normal.
In short, while there are plenty of predictions that the Housing Market will be in recession over the next few months, it is starting from a very high point, and nobody can know just how much it will fall. Remember a 15% reduction in 2023 over 2022 will bring us back to 2021 prices or thereabout.
If you would like to know more, please call 01292 477788 or scan the QR code below to get an idea of the market for your home.
[ *Figures from Righmove.co.uk]