What is happening with the Property Market?
Lou Fletcher from Piccolo Sales and Lettings in Salisbury and Wilton provides the October Property Market update. She looks at what is happening with the Property Market:
“In over 20 years in the industry, I don’t think I’ve ever known the housing market change so quickly! The mainstream media is doing a fine job of stoking up fear and panic but is it all doom and gloom on the housing front?
“The situation is changing daily and published data over the past few weeks from a variety of sources gives a mixed picture. It leaves many people wondering what is happening with the property market?
“The Rightmove House Price Index published at the end of September tells us this*:
- The average price of property coming to the market in September rose by 0.7% (+£2,587) in the month to £367,760. This is in line with the ten-year September average increase of 0.6%
- The middle and high-end market sectors are driving price rises this month, with a new record average asking price (£340,513) in the “second-stepper” category (three bedrooms and non-detached with four bedrooms)
- Buyer demand is up 20% on the pre-pandemic five-year average
- The number of homes coming to market in September rose by 16% compared to this time last year, which is a return to 2019 levels.
“The RICS UK Residential Market Survey paints a different picture and indicates that**:
- New buyer enquiries fell for the fifth month in a row
- Indicators on new instructions and agreed sales remain negative
- The limited supply of homes for sale continues to support house price growth
However, the general consensus seems to be that the housing market is surprisingly resilient despite economic pressures.
“Two-thirds of homes (66%) are now exempt from stamp duty for first-time buyers in England*, and by raising the stamp duty threshold from £125,000 to £250,000, a third of all homes currently for sale (33%) are now completely exempt from stamp duty in England (assuming this is a single residential purchase).
“Despite the announcement to cut stamp duty, first-time buyers are facing increasing cost pressures and this has contributed to demand in the first-time buyer sector being down by 8% on the same period last year. But, to put this into context, demand for first-time buyer type properties is still up by 27% compared with the five-year pre-pandemic average between 2015 and 2019*.
“It is almost impossible to predict how things will pan out. Many home buyers and home sellers are taking a cautious ‘wait-and-see’ approach to moving home and we risk a downward self-fulfilling prophecy if the majority expect house prices to fall.
To quote Anthony Codling (Founder and CEO of Twindig)*
- Since 1931, house prices have gone down in only 16 years.
- There is no correlation between bank rates and the number of mortgage approvals. In fact, when interest rates were 15%, there were more mortgage approvals that during the pandemic.
- Data since 1950 indicates that house prices are more likely to go up above the rate of inflation.
For some expert advice on the property and local rental market or for further information on what is happening in the property market right now contact Piccolo Sales and Lettings. You can call on 01722 580059 or email via firstname.lastname@example.org.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. Your Mortgage Expert Ltd and Mortgage Advice Bureau cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation.
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