Spring Property Market Update
The property market continues to show stability on the South Coast, with activity for the first 4 months showing to have been positive, when compared to 2023.
Prices have largely remained unchanged, however, there's been a notable increase in buyer activity attributed in part to seasonal factors and improved weather conditions, but more so to the decrease in mortgage rates seen towards the end of 2023. After several months of unaffordability many buyers ‘held tight’ in the hope we would eventually see an improvement. This slight decrease was enough to entice them into the market, with the aim of securing a good deal before anything changes.
This ‘pause’ in buyers making their move created a feeling of pent-up demand at the start of the year, and we have seen that this demand remained robust throughout the following months. Buyers are looking especially for houses priced between £250,000 to £400,000, with properties in this range experiencing quicker sales. Conversely, properties priced above this range are taking slightly longer to sell. This further highlights the importance of pricing your property correctly, and not getting overexcited by an overinflated valuation.
In the apartment segment, demand is also strong, although it's more of a buyers' market due to the availability of similar properties. Sellers may need to differentiate their offerings to stand out in this competitive segment.
Overall, the market is dynamic, with varying conditions across different price ranges and property types
What's happening around our partner regions?
The property market, within both Birmingham City Centre, and its residential outskirts is seeing a noticeable growth in demand since 2023, and we would put this down to one main reason - mortgage affordability.
The higher rates in 2023 meant that for many, purchasing a home wasn’t viable, and therefore a large group of buyers were waiting for the right time to make their move.
However, after several months of high mortgage rates, the start of 2024 saw these figures begin to decrease, making mortgages much more affordable. With pent-up demand and a new better rate, those who had been waiting for most of 2023 began to enter the market at the start of 2024 in the hope they could finally secure a deal. With more buyer confidence, sellers can expect to see a greater and more diverse pool of buyers, all with an increase in the commitment to proceed with the sale.
This is demonstrated in our statistics which show that March 2024 had a surge in sold properties. So much so, it is the highest number of properties sold since 2019 which was a pre-pandemic market. This should give buyers and sellers alike the confidence that our property market is gradually returning to one that is more stable and familiar, or possibly even better than before.
In addition, the New Build market is also coming back to life. Many developers are showing their commitment to build now the market has proven more fruitful. This not only increases interest in the new build market, but also creates further movement down the chain in the re-sale market, meaning everyone can benefit.
Looking ahead, the housing market is forecasted to continue firming throughout 2024, but with no immediate acceleration in house price inflation anticipated. The trajectory of price stability and market activity will largely hinge on future interest rate movements, although current fixed-rate mortgages reflect expectations of stable rates for the remainder of the year.
Scotland has remained the fastest selling market in the UK in the first three months of 2024, with an average time on the market of 43 days, compared to the national average of 71 days. DJ Alexander outperformed these numbers by achieving an average selling time of only 33 days.
It has been a strong start to the year for sellers with the average sale price achieved in excess of home report valuations. The average sale price in Scotland during the last three months was £180,000, with the average in Edinburgh being £263,000, and in Glasgow £175,000 which indicates a 3-6% increase compared to the same period in 2022.
For DJ Alexander, and specifically in Edinburgh, one & two-bedroom properties up to around £250,000, were the highest in demand, particularly those along the new tram line extension. Properties at the higher end of the market (£500k +), have also had a strong start to the year, with a high volume of sales being achieved during Q1. We are mainly seeing this in EH4, covering areas such as Stockbridge, Comely Bank, Dean Village and Craigleith.
Across Glasgow, our sellers have had real success in Q1. In particular, we have also seen one & two bedroom flats within traditional tenement buildings achieving groundbreaking sale prices. Areas such as Finnieston, Shawlands and Dennistoun also continue to be the most attractive areas for buyers.
Overall, there has been a real uplift in market confidence in Q1 2024 as a result of the mortgage market stablising and we are seeing sellers who had paused their plans until the market became steadier, now coming to the market. With affordability more favourable, there are more first-time buyers and upsizers re-entering the market, therefore we are expecting a continued buoyant market for the rest of 2024.
The property market, within both Birmingham City Centre, and its residential outskirts is seeing a noticeable growth in demand since 2023, and we would put this down to one main reason - mortgage affordability.
The higher rates in 2023 meant that for many, purchasing a home wasn’t viable, and therefore a large group of buyers were waiting for the right time to make their move.
However, after several months of high mortgage rates, the start of 2024 saw these figures begin to decrease, making mortgages much more affordable. With pent-up demand and a new better rate, those who had been waiting for most of 2023 began to enter the market at the start of 2024 in the hope they could finally secure a deal. With more buyer confidence, sellers can expect to see a greater and more diverse pool of buyers, all with an increase in the commitment to proceed with the sale.
This is demonstrated in our statistics which show that March 2024 had a surge in sold properties. So much so, it is the highest number of properties sold since 2019 which was a pre-pandemic market. This should give buyers and sellers alike the confidence that our property market is gradually returning to one that is more stable and familiar, or possibly even better than before.
In addition, the New Build market is also coming back to life. Many developers are showing their commitment to build now the market has proven more fruitful. This not only increases interest in the new build market, but also creates further movement down the chain in the re-sale market, meaning everyone can benefit.
Looking ahead, the housing market is forecasted to continue firming throughout 2024, but with no immediate acceleration in house price inflation anticipated. The trajectory of price stability and market activity will largely hinge on future interest rate movements, although current fixed-rate mortgages reflect expectations of stable rates for the remainder of the year.
The market in the first four months of 2024 in Yorkshire is experiencing a notable spring back after some plateau towards the end of 2023. In particular, we can see that properties located within the suburbs of Leeds and Harrogate are in high demand and subsequently these areas are experiencing an increase in the number of sales transactions.
More specifically, the most popular property types here have been two and three bed semi-detached houses, perhaps highlighting the desire for buyers to make that second step and expand the space of their home in the suburbs of our popular towns and cities.
We believe there is one key reason for this ‘bounce-back’ which is the reduction in mortgage rates. Having faced many months of ‘unaffordable’ property purchases in 2023, there has been a build of demand which has now been ‘released’ thanks to the gradual reduction in mortgage rates. Keen buyers have been making their move in the early part of this year in the hope to secure a deal before prices subsequently increase. Specifically in our offices we have seen an increase in the number of applicants registering to buy who also have a house to sell. This indicates to us that we can expect to see an extremely busy market over the coming months, as these customers put their own home up for sale and open chains are finally completed.
5 Top Tips for Selling Your Home This Spring
Spring brings with it a sense of renewal and freshness, making it the perfect time to put your home on the market. The brighter days and blossoming gardens make properties look their most inviting, and with longer days comes more opportunity to showcase your property in daylight. If you're planning to sell your home this spring, here are five top tips to ensure your property stands out and captures the hearts of potential buyers.
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