May 2024 Market Update

With Summer edging nearer, a general election on the horizon, and the Spring market soon coming to a close, will the positivity we have seen lately in the market continue?

Taking a look at house prices first of all, from Rightmove’s latest house price index we can see that the healthy Spring market activity boost has had a positive impact on house prices and has lead to a 0.8% increase in house prices when compared with the previous month. This now puts the average price of property coming to the market at a new high of £375,131, 0.6% higher than at the same time last year.

Breaking this down into market sectors, we can see that in the top-of-the-market sector, the average asking price is up 1.3% on the same time last year, while first-time buyer homes and second-stepper homes have increased by 0.7% and 0.5% respectively. This shows that while pent-up buyer demand and the momentum of the Spring market have positively impacted house prices, the market does remain price-sensitive. The highest activity levels currently lie at the lower end of the market as those sellers who have priced their property more sensitively are seeing the benefit of the increased demand and momentum of the current market.

But, how does this translate into sales agreed? Looking at the number of sales agreed in the first four months of the year, we can see a 17% increase on the same period last year. Many buyers paused their search last year due to a few factors impacting affordability and the housing market, such as high interest rates. While interest rates have remained stubbornly high, with fixed rates coming to an end, homeowners have no choice but to take on the higher rate so this becomes less of a factor when deciding to move. This combined with the pent-up demand has had a positive impact on house prices and the increase in the number of sales being agreed exceeds the 12% increase in new property listings coming to the market. This is a sign of a healthy property market with demand increasing all the while sales being agreed are outweighing new listings.

So, what about after you manage to agree a sale? Currently, the average time it takes for a sale to progress from under offer to completion is 154 days, or 5 months. This average is higher than has been seen in previous years and is something the government is keen on reducing by reviewing the lengthy processes taken in conveyancing. However, with the right agent who has experienced team members dedicated to progressing a sale, this shouldn’t pose an issue for you. If you have particular dates you are working towards, it is a good idea to make your agent aware of these as early on as possible to set expectations early on. It may seem a bit early to talk about Christmas, but with the duration of the conveyancing process, those looking to be in their new home by Christmas should be making their move on the market now.

Looking forward to the future of the 2024 housing market, these raised activity levels and improved market conditions do project an increase in the number of property transactions that take place in 2024. With the election soon out of the way and interest rates projected to decrease, the second half of the 2024 property market is predicted to continue on this positive trend and perform better than the earlier half of the year. However, some challenges will remain, mainly the lengthy legal process, causing frustration for buyers, sellers and agents alike. The market also remains price sensitive and, to give your property the edge in the current market, making sure your property is priced accurately and attractively right from the start will make all the difference.

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