February Market Report. Local property news for you...
Agreed sales in the first six weeks of 2024 are 16% higher than over the same period last year, and 3% higher than in the more normal market of 2019, indicating that many early-bird buyers feel that 2024 offers the right conditions to move.
“We said that February would be an important indicator for the year ahead, and the question was whether the Boxing Day bounce in buyer activity would keep its spring into March or lose momentum. It’s proved to be the former, with the number of sales agreed continuing to considerably outstrip last year.
Mortgage rates have fallen considerably from their peak and are now remaining broadly stable. Momentum to move in 2024 is continuing to build, but prospective sellers mustn’t get carried away. Buyers now have more choice of property for sale and many are still very price-sensitive.
Sellers who are serious about moving this year would be well-advised to ride this wave of increased buyer confidence with an attractive asking price before any pre-election jitters dampen the momentum.” Tim Bannister Rightmove’s Director of Property Science
Prices
The average price of a property rose 0.7% in the month of January, the strongest rate in a year, Nationwide.
Kim Kinnaird, Director, Halifax Mortgages, said: “The average house price in January was £291,029, up +1.3% or, in cash terms, £3,785 compared to December 2023.
“This is the fourth consecutive month that house prices have risen and, as a result, the pace of annual growth is now +2.5%, the highest rate since January last year.
“The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market has contributed to increased confidence among buyers and sellers. This has resulted in a positive start to 2024’s housing market.
Demand
All Ocean offices report higher stock levels with increased buyer interest, both viewing levels and offers made are significantly higher than recent months. As with the national market, Bristol buyers remain cautious, properties that appear overpriced may suffer from lack of interest.
Sales agreed numbers are being supported by more buyer and seller activity. During the first six weeks of 2024, the number of properties coming on to the market was 7% higher than the same period last year, while the number of buyers enquiring to estate agents was 7% higher. The number of sales being agreed is now 3% higher than at this time in 2019, as these numbers continue their transition towards more normal levels. Rightmove.
The number of sales agreed in the first six weeks of the year is 16% higher than in the same period last year, indicating that early-bird buyers feel that 2024 offers the right market conditions to move, and they are already seizing the opportunity. However, the market remains price-sensitive, with many buyers very budget-conscious. Sellers who are over-optimistic and think that the more positive market sentiment will let them try asking for too high a price, risk being left on the shelf and missing out on the important Spring moving season.
Update: 29th February
Zoopla says UK buyer demand is up 11% year-on-year, while the number of sales agreed has increased 15% during the same period across all regions and countries of the UK. Meanwhile, the supply of homes for sale is 21% higher than a year ago – a further sign of greater confidence amongst vendors, whilst also increasing choice for purchasers.
Transactions
RICS' measure for newly agreed sales edged higher in January, with a net balance of +5% compared to a value of -5% previously.
The number of sales agreed in the first six weeks of 2024 are 16% higher than the same period last year and 3% higher than in 2019, Rightmove.
Zoopla say: All measures of housing market activity are up year-on-year. The uplift in agreed sales in the final weeks of 2023 has continued into 2024. This suggests buyers and sellers are becoming more aligned on pricing after over a year of tussling.
New sales are 13% higher than a year ago and up across all countries and regions.
Investment/lettings
Annual growth in rental prices in the UK stayed at 6.2% in January, the same as in December and the strongest since records began. The Index of Private Rented Housing Prices reports on both new lets and renewals.
The average UK rent dropped by -0.6% in January to £1,260, but remains 7.5% higher than the same time last year, HomeLet. Rental price inflation is forecast to ease back to +5% through 2024, as tenant demand reduces against continued cost of living pressures, Zoopla.
Please not average Bristol rental price are significantly higher for all property types and areas. Please contact your local Ocean Lettings team if you have specific rental yield enquiries.
We hope that was useful and informative. As always, our teams are here to help, get in touch with any questions about your local property market, and to discuss your home move considerations.
If securing a new mortgage or arranging a re-mortgage is important for you right now, click here to book an online consultation, our mortgage brokers are independent, and their services are free to you.
Finally, if you are (understandably) confused by some of the mixed market reporting, not least by some of the more sensational news reporting each month, click here for some independent insight into how House Price Indexes are compiled.
Sources: Rightmove, Zoopla, On the Market, Dataloft, Land Registry, National House Price Index, DLUHC
Contact your nearest office if you have any questions about your local property market.
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