2023 wasn’t the best year for the local housing market as higher mortgage rates impacted on how much our buyers could afford to pay, – even when they really liked a property. But this trend is levelling off now and whilst we’re not seeing a major uptick yet in achieved prices, it would be fair to say both our buyers and sellers are not expecting prices to drop any more. The Bank of England didn’t reduce the base rate in their first meeting of 2024 , – and they might not for a couple of months more, – but it’s starting to feel like its only a matter of time. Many mortgage lenders have already reduced their interest rates especially on fixed rate products.
The housing market in our area often starts to motor in the months between March and July, because many of our movers want to synchronise with school years. And if you want to move in the summer you need to be getting a sale or purchase wrapped up in the spring/early summer. This year this will probably start to get going just as mortgage rates drop a bit more, so it could be a busy period. But its still a good time to sell now if you’re thinking about it, because there isn’t actually that much available on the market at present. Some of the properties which were hanging around in December and January have sold because buyers have a limited choice and new properties coming on are getting lots of interest. We marketed a 3 bedroom house in Broughton Avenue last week and we’ve had 4 offers on it,- all over the asking price. We think our buyers also sense that prices could start going up later this year, so there is a incentive to try and grab what’s out there and they are now prepared to pay a full price for the right house or flat. We also definitely have more first time buyers than we’ve had for a while, – we think this is partly because their rents have increased so much that they’re better off trying to buy, especially as some mortgage lenders are letting them do so on only 5 and 10% deposits. Often the trigger point has been their landlord asking for a significant increase in their rent.
So if you have been thinking about a possible move this year contact us to get on our register. Remember not all sellers these days want the full glare of publicity so their properties might not be appearing on websites. You need to be known to us to get tips about any of these. Equally if you’re thinking of selling this year, we’re always happy to provide a free market appraisal of your property with no obligation. Just ring us on 0208 549 5099 or drop us an email to mail@mervynsmith.co.uk