NEW YEAR, NEW HOME? Market Update
3rd January 2023
3rd January 2023
We love helping people move!
We wanted to take this opportunity to wish you a very Happy New Year!
In the week before Christmas, we agreed more sales in the Bideford area than any other agent, which we hope demonstrates the market is not as grim as the media might have you believe! We also had seven transactions complete in December with very happy buyers and sellers who were able to enjoy Christmas in their lovely new homes! The video below celebrates some of our achievements in 2022.
In the latter stages of 2022, the country went through unprecedented turmoil with two new Prime Ministers in as many months and the disastrous ‘Mini Budget’.
What does all this mean for the housing market? We expect that lower numbers of new buyers since the mini-budget will translate to lower transaction numbers in Q1 and Q2 this year, while the market readjusts to a higher interest rate environment. It’s interesting to note that we have not seen huge numbers of properties come to the market, so we expect restricted supply to continue into the start of this year, which will help to keep the market moving for those homes currently available. The number of views of homes for sale on Rightmove is up 11% compared to this time last year, a sign that there are many potential movers who are monitoring the market in detail and weighing up their options. Mortgage rates have now begun to cool and may continue to do so into the new year, which will support buyer affordability. Mortgage lending is holding up well and Banks are still lending. We anticipate mortgage interest rates will settle at around 4.5%-5%, and whilst this is an increase on the unprecedented lows of the last couple years, these are the sort of rates that prevailed in 2019. We predict that the market will settle into a more normal pre-pandemic level of activity as 2023 progresses. The market will certainly be far more price sensitive than it has been in the past couple of years, as economic headwinds continue to soften activity and lead to a more normal market, though price falls will be tempered by few forced sales.
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