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New Year News in the property market
Monday, January 15, 2024
A record number of both buyers and sellers made 2023’s Boxing Day bounce the biggest ever, according to Rightmove which saw a 26% increase in new sellers coming to the market. Buyers also got a move on; the number of buyers contacting estate agents about homes for sale on Boxing Day was 17% higher than in 2022.
Rightmove’s property expert Tim Bannister said: “The scale of this year’s Boxing Day bounce is an early positive sign at the start of the year that buyers and sellers are out there and taking action, likely including some movers who had put their plans on hold last year. “Whilst it is early days, it will be key to monitor activity as it ramps up through the end of winter and into spring, particularly to track whether sellers are pricing attractively enough to agree a sale with a buyer quickly, given buyers now have more choice to consider than last year and are still very price sensitive.”
Home movers have also been given a new year boost as mortgage rates continue to drop with sub 4% rate for the first time in a year. A reduction in swap rates in December is now filtering through to mortgage rates and lenders are likely to reduce rates further in the coming weeks. In November, mortgage approvals hit a four-month high according to Bank of England data, demonstrating just how resilient the property market is proving to be. Nathan Emerson, CEO of Propertymark, is cautiously optimistic that the worst is over for the property market. He said: “We have seen high inflation and elevated interest rates. This harsh mix without doubt has translated into people approaching the market with a more cautious mind. That said, over the last few months we have seen initial positivity starting to return, with inflation steadily coming back down and interest rates holding steady.”
There are definitely green shoots for the property market, with buyer demand in the first weeks of 2024 14% above that of early January 2023, and sales agreed up 16% this year compared to the first week of 2023 according to Zoopla. With the reduction of mortgage rates seen since new year, and improved buyer sentiment, this momentum is expected to continue in the coming weeks.
For more detailed information about what’s happening in the property market in your local area, or a free valuation and professional advice about marketing your property, please contact your local Frost office.
