As the housing market moves into the holiday season, activity is slowing as the masses focus on sunnier destinations. This is normal at this time of the year with an expected upturn in September once the school’s return.
However, despite interest rates rising over the past 18 months the market is still ticking over and showing signs of resilience.
Although property prices have reduced it doesn’t feel like they are going into free fall. The increase in house prices generated by the period of record low interest rates from mid-2020 to the autumn of 2021 has been wiped off and prices are currently sitting around pre-Covid levels.
The number of available properties For Sale is the restricting factor for most sellers and those who are still trying to achieve prices of a couple of years ago simply won’t move. This is evident by the number of properties that come to the market at a bold price; they are reduced once or twice and then eventually withdraw completely as the price expectation of the seller is not achievable.
The smart sellers will price their property correctly in line with current market conditions, find a buyer and then buy at the correct price in line with current market conditions, the cost of both properties in the transaction being relative.
For buyers the choice of properties is greater now than in recent years and although interest rates are higher, property prices are lower so the overall impact of buying isn’t more expensive than it was when rates were lower.
For us, transactions are roughly around 2019 levels so it is fair to say the housing market so far hasn’t been hit too hard by rising interest rates, inflation and a squeeze on finances. It feels like the frenzy created a couple of years ago has been reversed.
The Bank of England meet again on 3rd August so the we all wait with bated breath but I am sure whatever the outcome the market will deal with it as so many people still want to keep moving forward with their lives.