April 2024 Market Update

In the last market update we spoke of the positive impacts we expected Spring to bring to the housing market. So, let’s do a deep dive into the changes we have seen in the market over the last month and look at the impacts on property prices and what this means for you.

Firstly, when comparing to this time last year, the number of new properties being listed for sale is up by 12%. This increase also translates into sales being agreed, which are up 13% on the same time last year. Breaking this down into market sectors, we see that this positive change is greatest in the top-of-the-ladder sector, which is up 18% for new properties coming to market, and 20% for sales being agreed.

The number of sales being agreed is now in line with the level we saw in 2019, even with the more challenging conditions facing buyers in the lower sectors of the market. Mortgage rates are staying higher than some predicted at the beginning of the year, due to the more limited-than-expected change seen in inflation. These challenges are evidenced in the data available from Land Registry for February housing transactions, where cash purchases made up 40% of housing transactions, up from the 35% proportion this time last year.

How does this boost in activity translate into property prices? Looking at the average asking price of new listings, we can see that prices are up 1.1% from last month, falling just short of the record asking price of May 2023 by a mere £570, to £372,324. This puts the yearly change in asking price at 1.7%. The driving factor behind this positive change most likely lies in the increased activity we have seen in the top-of-the-ladder sector.

There are a few events coming up in the Summer months which are expected to impact the housing market. The General Election usually has an impact on the housing market, as new sellers wait to hear changes to stamp duty and policies surrounding housing, so delay listing their properties a little longer. This means that now is a fantastic window of opportunity to capitalise on the Spring activity boost we have seen and maximise your walk-away figure while activity is nice and high.

The increases we have seen this Spring are all positive signs for the year to come. However, the market remains price sensitive so it is important not to get caught up in these increases and set your sights too high.  The best way to make sure you are pitching your price right for the market is to speak with an experienced local agent who not only provides you with a valuation figure but also evidence to support their valuation of your property.

Moving house is a big deal – so why not let us guide you through the process? We’d be delighted to hear from you and happy to offer straight-talking advice without any obligation. Call us on 01323 440678.

Data sourced from publicly available sources including Rightmove, Zoopla, Nationwide