As we end the year it is fair to say it has been a turbulent one for the property market. The impact of rising interest rates has taken its toll on confidence with many potential buyers and sellers holding off their decision to move. Many sellers withdrew their property from the market once they realised their expectation of price wasn’t achievable, still expecting to sell for a similar sum of two years ago.
Overall transactions are down and prices are lower today than a year ago but the welcome freeze of Interest rates by the Bank of England has restored some much-needed confidence. November and December have seen more activity than the previous six months as the concern of ever-increasing interest rates has subsided. Many mortgage lenders have reduced their rates and this has stabilised house prices and already there is talk of prices rises again.
Suddenly there is much more optimism for the new year with enquiry levels unusually higher in the lead up to Christmas than in many previous years. Based on current enquiry levels we expect a strong start to the new year but it is too early to become over confident as the economy feels very fragile and the risk of further interest rises cannot be dismissed.
If you’re thinking of making a move in the new year talk to us, we are more than happy to offer advice if you are selling or buying.