As we move into the festive period, strangely the housing market is busier now than it was in the more traditional Autumn time. We believe many potential house movers were nervous for the vast majority of the year as interest rates continuously increased. However, we have now enjoyed two occasions when interest rates have been held which has definitely instilled confidence to the market. We have seen a significant increase in new buyer enquiries over the last month.
At the moment it feels as though the worst is behind us and more buyers and sellers who were holding back now feel it is the right time to move. If the Bank of England hold rates again on the 14th December, when the monetary committee next meet, this will help to spring board the market into the new year.
With inflation starting to be controlled we can only look to the next year with optimism after a particularly tough 2023. Although house prices have dropped over the past year or so it now feels they are stabilising. The number of properties available for sale is still high with much competition from the brand new homes market, many national house builders have been offering amazing deals over the past year to entice buyers in who would have originally purchased a second hand home.
Many sellers need to be mindful that buyers have a huge choice of properties to look at, therefore accurate pricing is important. It is evident many sellers are still having to reduce their asking prices as many overpriced their property initially.
The big hope for 2024, is that later in the year we may experience a slight reduction in interest rates, so maybe mortgage rates will then settle at a new normal between 3.5% and 4%, roughly where they were pre-covid. This may then lead to a healthy and stable market, something that is needed, especially with so many people coming to the end of their fixed rate mortgage deals over the next two years or so.
From all at Richard James, may I take this opportunity to wish you a peaceful festive period.