Housing demand and sales agreed have registered a strong seasonal rebound over the first three weeks of 2024 as sub-5% mortgage rates support market activity.
Buyer demand is 12% higher than a year ago but remains 13% below the 5 year average which includes the pandemic boom years (2021- 2022)
It is a positive start reflecting a return of pent-up demand following a weak 2023 when many buyers delayed moving decisions in the face of rising mortgage rates.
Zoopla reported an increase in sales agreed in the final weeks of 2023 a dthis trend has continued into 2024. New sales agreed are 13% higher than last year ad higher across all counties and regions.
Sales are up the most in Yorkshire and the Humber (+19%) – this is evidence that buyers and sellers are becoming more aligned on pricing.
A greater flow of homes listed for sale, also indicates that sellers, many of whom are buyers feel more confident. Overall supply is 22% higher than last year.
Improving market conditions, in particular more sales, is supporting pricing levels. The Zoopla House Price Index recorded falls of 0.8% in December 2023, up form a -1.4% low in October 2023 – this is a very positive move.
London and the East of England have led the rebound in new buyer demand in the first weeks of 2024.
The rebound in activity in the first weeks of 2024 is positive news, and it is expected that mortgage rates will further improve which will support sales volumes rather than having very much impact on house price. Over 1 in 5 sellers are still having to accept more than 10% off the asking price to agree a sale. Sellers must continue to price realistically if they are serious about moving in 2024. Improved market conditions will boost the chance of a sale, but sellers should still be wary at listing at a higher asking price.
If you are considering selling your home in an improved market and would like a free market appraisal call David Phillip FRICS on 01134 676 400 W: davidphillip.co.uk e-mail: info@davidphillip.co.uk.
Covering Leeds, North Leeds, Bramhope, Adel, Cookridge, Pool-in-Wharfedale and Otley