So what will the property market be doing in 2023? Who can predict?
The last year has been an adventure with mortgage interest rates steadily and consistently rising throughout the year with rates now sitting at a 14 year high. Property prices are now lower than they were at this point last year but the demand for buying and moving home hasn’t wavered.
Despite the cost-of-living crisis, high inflation and turbulence in Government, it seems many of us still want to get on with life, there are still many committed house movers and first-time buyers who are taking advantage of a greater choice of property at lower prices.
There are always going to be sellers who want to stick to their guns and not reduce their asking price from the heady artificial prices of a year ago. Prices have settled down and if sellers don’t adapt to the new price model, simply, they won’t move. This is why in recent months so many properties have been withdrawn from the market.
The clever sellers are understanding the market and reducing to attract buyers and then purchasing at a lower price, making the price difference relative.
First-time buyers are paying more to borrow money but they are buying at lower prices so overall they are no worse off than buying at the peak of the market.
The housing market feels like it is moving into a period of stability. It is likely that mortgage interest rates will settle between 4% and 5%, this becoming the new normal; and property prices have now dropped to a point where they are still affordable.
A new year will bring new opportunities in a new market. If you’re looking for advice on the value of your home please get in touch with us – we are more than happy to help.