Spring is the season of new beginnings; it is no surprise that it can also be a popular time for people to decide to move home. Yet it has been a rocky road for the housing market over the last few months, and therefore, we know you will be grateful for a bit of insight, especially after all the conflicting commentary and data on the market from so called experts, which has left many buyers and sellers even more confused! The property portal Zoopla have released their latest house price index, which we thought we would analyse and share, which may help you make decisions on when is best for you to buy or sell your home.
Buyers are returning
Over the last few weeks, we have seen buyers returning to the market, with an increase in applicants registering, viewing numbers up and new sales are being agreed in Cheadle which is excellent news. This reflects what is happening nationally: that is, seeing the demand for homes at the highest level since the fallout from the mini-budget last October. Although demand is 16% higher than the same time in 2019, house prices are still 1% lower than they were in October 2022. Overall, the housing market is proving more resilient than the doom and gloom predicted for this year, and we are seeing sales starting to pick up.
Choice has been a big issue for buyers over the last year, with the number of properties on the market being low. According to Zoopla, ‘There are now 60% more homes available for sale than there was this time last year.’ More homes means that buyers have more options, but buyers are looking for value for money due to reduced buying power caused by rising mortgage interest rates and the general cost of living. House prices in general are slowly coming down, their House Price Index shows, ’The national average house price has now dropped £1,100 from £260,800 in February to £259,700 in March.’ It is not as frenetic, and buyers are not getting into a Dutch auction for every house that comes available.
Sales market
If you have been following the local property market, you may have seen yourself that homes are moving. The number of estate agent signs that state ‘SOLD – Subject to contract’ is an important indicator of a healthy market. Yes, sales agreed are lower than this time last year, by 16%, but they are 11% higher than they were in 2019, so it is important whether you are thinking of selling or buying to realise, we have now just returned to what can be considered a normal market, not an artificially inflated one during Covid and just after. As a seller, you just need to ensure your home is priced competitively to reflect the market and attract the buyers who are seriously looking for a property to buy.
One thing you must bear in mind is the time it is taking for a home to sell. Zoopla state that ‘from being first listed to going under offer – the average home is now taking 15 days longer to sell than in spring 2022, when we were in a red-hot housing market. … New sales agreed, subject to contract, can take on average 3 to 6 months to turn into a completed sale, when the buyer gets the keys and moves in. Some deals will fall through during this period and often homes are resold to another buyer. It is during this period of “sale progression” that a good high street agent earns their money by managing the sale closely, keeping on top of milestones in the transaction and almost anticipating problems before they become a problem!
Second steppers
When it comes to the proportion of homes across the UK that are selling, there has been a clear shift to the cheapest 40% of the market, state Zoopla, with this sector of the market agreeing 5% more sales. This is in complete contrast to the top 40% of high-end homes that have seen a 4% drop in agreed sales. What this data shows us is that those homeowners who are looking to upsize are in a favourable position due to more choice of potential new homes.
The rental market has also had its part to play with the current housing market trends; Zoopla’s research shows that the ‘rapid 11% rise in rental rates in the last year is continuing to support demand from first time buyers, who accounted for 1 in 3 sales last year.’
Are you looking to move?
If you are looking to move SK8, SK3 or M22, whether you’re a first-time buyer, second-stepper or home seller, we are here to provide you with clear, honest and constructive advice to help you make an informed decision for your future. Give our Joe, Patrick or Maurice a call on 0161 428 3663, e-mail sales@mkiea.co.uk or pop into our office on Cheadle High Street for an informal chat. Alternatively, you can book a free-market appraisal and sales consultation online by following this link to our valuation page.
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