Despite the brake on house-price growth, the market, as well as economic outlook, is showing tentative green shoots as we head towards Spring, says Member of The Guild of Property Professionals, Adam Cotham, Managing Director of David Davies Sales and Lettings Agent in Southport.
He notes that there has been a welcome fall in mortgage rates, with rates of below 4% for lower loan-to-value mortgages.
Adam said: “Typical costs of a two-year deal and five-year fixed-rate mortgage have fallen back to where they were in October 2022, despite the Bank of England Bank Rate rising by 1.75% during this period. There has also been a rise in the number of mortgage products, with over 4,000 different products now available. According to Zoopla, the number of days a product is available before it is withdrawn has also increased. It is now at 28 days, which is up from just 15 days in January, the highest level since March 2022.”
He says housing market and economy are closely interlinked, and despite the rising cost of living, the rate of inflation has slowed and is expected to fall back over the course of the year. Employment levels remain strong, GDP forecasts are improving, and any recession is expected to be less severe than first predicted. Prices are softening but many sellers continue to be over-optimistic on price. With supply returning to more normal levels, up 60% compared to a year ago, there is more choice for prospective purchasers with Zoopla reporting the average discount to asking price is currently 4.5%.
Adam said: “Looking at property prices, after two years of unsustainable rises, an expected price moderation in 2023 is not a surprise.
“The latest figures from Nationwide show that national price growth has moderated from 11% in the summer of 2022 to -1.1% in February 2023.
“Across the regions, annual price growth at the end of December remained firmly in positive territory, but the start of 2023 has seen prices start to moderate.
“Rightmove reports that at just £14, the rise in new seller asking prices in February was the smallest-ever increase from January to February, with month-on-month asking prices recording marginal falls in nearly half of all UK regions.”
He added that over the past two years the property sector experienced a wave of activity, however the market is now stabilising and pausing for breath as stock levels and time taken to secure a sale are gradually returning to pre-pandemic levels.
With buyers currently in the driving seat, sellers will have to show greater realism on price to get their sale across the line.
He said: “Looking specifically at Southport, houses remain the most sought-after property choice for new buyers across the market, but the proportion of prospective purchasers seeking apartments has risen.” .
- If you would like some further information on the Spring market update, you can contact David Davies Sales & Lettings Agents on 01704 338888 or you can visit their office at 25 Market Street where copies of the report are available. You can also email: sales@daviddaviesestateagent.co.uk or visit: daviddaviesestateagent.co.uk
Do you have a story for Stand Up For Southport? Please message Andrew Brown via Facebook here or email me at: mediaandrewbrown@gmail.com
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