What’s going on with the housing market?
Amid the nationwide wave of rising inflation and fluctuating mortgage rates, it's easy to feel disheartened about the housing market.
However, it’s equally important to remember that the national scene doesn't always reflect what's happening on your doorstep.
If you're contemplating a move, it's crucial to analyse your local housing market, as its trends could differ from the broader picture.
Here’s the latest Propertymark housing market news:
House sales market figures
· The average number of new prospective buyers registered at each Propertymark branch (which Samuel Wood is one of) lifted moderately to 86 in the past month.
· Meanwhile demand was only 4% lower in May 2023 compared to May 2022. This may come as a surprise when you consider all the negative headlines about the economy and interest rates.
· The average number of viewings per property has remained roughly stable with the spring 2023 figure of three per property, but this is down by about 50% on the figure a year ago when the housing market was in a state of frenzy.
· Meanwhile the supply of new homes on the stocks at each Propertymark member branch is down from 10 this spring to nine now – only a small drop. The number of agreed sales has seen a similarly small fall, which now runs at seven per branch on average, compared to eight in April.
What about house prices?
The days of homes routinely selling at above asking price have long gone – that was last year’s story, and it was a very un-typical market. So, if you’re selling your home, it’s essential to be realistic about pricing it. This will help to get it sold more quickly and avoid price drops.
The summer 2023 picture is quite different with the number of agents reporting the proportion of sales settling below asking price still on the rise and now sitting at 79 per cent. This compares to 74 percent in April 2023 and 23 percent in May 2022.
The lettings market – no surprise here
There’s no surprise for guessing what our friends at Propertymark report – once again demand is outstripping supply, pushing up rents a little further.
The number of new prospective tenants registering per branch showed little movement at 113 – the April figure was 118.
The number of properties available to rent per branch is still very, very low at a meagre nine in May. This is 12 percent lower than in May 2022 when we first saw the rental market starting to significantly overheat.
The current demand-supply imbalance translates into an average of 13 prospective tenants registering per available property – a slightly worse position than a year ago – meaning two-thirds of Propertymark agents have reported rent rises.
A word of caution
We mentioned right at the start of this update that things are happening fast right now.
We’re seeing high inflation and changing Bank of England data every few weeks, and mortgage lenders are changing their rates sometimes every few days.
So, while these figures are the most up-to-date from the front line of sales and lettings, anyone on the verge of buying, selling, or renting would be advised to speak to us in person to get the very latest local picture.
You can use our FREE valuation tool to get an idea of what your house might be worth, but it’s always worth speaking to us in person so we can ensure you are getting the most accurate valuation for your particular property.