Reasons to be positive about the 2023 Cheadle Property Market

Decorations are down, diets have been started – and probably finished if you are like us! and you have all those good intentions to keep lots of New Year resolutions. One of those may have been to move home, but the chaos at the end of last year, put the brakes on the market and caused many sellers and buyers to put their plans on hold. Last year brought many highs and lows as well as a wealth of pretty gloomy predictions on what the future holds. Yet amidst all the forecasts, there are signs that things could be a bit brighter for the Cheadle property market in 2023 than expected. 

Rightmove Data

Rightmove’s House Price Index in December stated that 2022 ended with new seller asking prices 5.6% higher than a year ago, and the number of views of homes for sale was up 11% compared with this time last year. There was a suspicion that the normal surge of properties on Boxing Day may not be as record breaking as in previous years. Yet December 26th, 2022, saw the highest number of new properties put up for sale than has ever been recorded on any Boxing Day. This was up by a staggering 46% compared with the same day the previous year.

Even with the all the uncertainty around, people still seem ready to invest in a move. This was confirmed by the increase in the number of people contacting estate agents between Boxing Day and New Year’s Day. According to Rightmove, this was the highest recorded number in a week since early September, valuation requests, too, were up on 2022 by 29%.

Rightmove’s property expert, Tim Bannister, said: “Boxing Day is traditionally the start of activity ramping up into January and the spring selling season after Christmas, as people return to their search or consider a new year move. We’ve seen some promising activity and familiar patterns over the festive period this year, which are good signs for the year ahead.

While we expect a calmer market this year than we’ve had since the pandemic started, the record number of sellers who chose to come to market this Boxing Day indicates there is a group of motivated sellers ready to move, who perhaps held back and now feel more confident.

After such frenetic market conditions over the last few years, this year’s calmer market will better suit measured movers who prefer to take their time to find the right property. The jump in number of views of properties for sale pre and post-Christmas is another good sign that the new choice available is getting a lot of attention from future buyers. 

After a pause for the festivities, those wanting to buy this year will be ready to get back to their plans and assess where they’d like to live and what they can afford. Those sellers who got a head start and have their home already up for sale will now be benefiting from the jump in viewings over the next few weeks, as people settle back into their usual routines.”

From conversations we have had with buyers and sellers Cheadle there is still an air of caution, the market will be slower, but we anticipate that it will be solid with opportunities for sellers who price their property to reflect the more challenging market, but buyers seem more resolute than many have predicted. 

Mortgage rates

What a year it has been for homeowners, the base rate rose in January from 0.25% within the space of twelve months to 3.5% after nine consecutive monthly rate rises. There didn’t seem to be many reasons to be joyful about mortgage rates this year, however we have seen rates starting to drop slightly and lenders start to release more mortgage products, after pulling some many after the ill fated mini budget last Autumn. According to Nationwide, cheaper mortgages will help avoid forced sales from mortgage defaults and, as a result, aid the housing market.

Robert Gardner Nationwide’s chief economist, stated: “With the chaotic backdrop and elevated mortgage rates in recent months, it wouldn’t be surprising if potential buyers have opted to wait until the New Year to see how mortgage rates evolve before deciding to step into the market. Longer-term interest rates, which underpin mortgage pricing, have returned towards the levels prevailing before the mini-Budget.

“If sustained, this should feed through to mortgage rates and help improve the affordability position for potential buyers, as will solidly rates of income growth (with wage growth currently running at a c.7% pace in the private sector), especially if combined with weak or negative house price growth.

But the main factor that would help achieve a relatively soft landing (especially for house prices) is if forced selling can be avoided, and there are good reasons to be optimistic on that front.”

In addition, in a shift from fixed to variable interest rates, Halifax on 3 January relaunched their mortgage tracker rates for the first time in four years. This continues what we have been seeing over recent months with lenders reducing their tracker interest rates. Last month also saw NatWest introduce two new 95 per cent loan-to-value products of equivalent value.

Whether you’re a first time buyer, moving home or looking to remortgage this year, we would highly recommend you use a mortgage broker to navigate the mortgage market. We would be delighted to put you in touch with our mortgage broker partners, the Mortgage Advice Bureau. 

Local trends

National and local trends can vary in the property market and often the press in particular like to show lurid headlines, that often only reflect the London Property Market and not individual micro markets. Discussing your needs with an established local estate agent will ensure you have a full understanding of the Cheadle Property Market market and how your home is expected to perform or why not follow our monthly blog, which looks at trends, house prices and buyer intentions, to give you a feel for what is really happening. If you’re looking to move in 2023, maybe things could be a bit brighter than you originally thought. Come and talk to Joe, Patrick or Maurice at our high street office in Cheadle, call 0161 428 3663 or e-mail sales@mkiea.co.uk – alternatively why not book a free market appraisal and marketing consultation to find out what your home is worth and where to position it in to sell. You can book an appointment online here Book a FREE Market Appraisal