According to Rightmove, the average price of a property coming onto the market has risen by 1.3% this month as a result of houses being listed from a quieter December market into the busier January one – this price rise is the largest for January since 2020 and more than double the 20 year average of plus 0.6%. The average new seller asking prices are still 0.7% lower than last year, highlighting that many new sellers are being realistic about their expectations as the market continues to recover from the impact of the recently volatile mortgage rates. However, the jump in the number of properties coming to market and the strengths of this month’s price rise also shows that new sellers are more confident about the year ahead.
Rightmove’s early snapshot of buyer and seller activity since the start of the year is tentatively promising for those looking to get moving in 2024 after a hesitant 2023.
The number of houses coming to market for sale is also 15% higher than the start of last year, following a record number of sellers launching on Rightmove on Boxing Day.
The most positive early indicator for 2024 is that the number of sales being agreed is 20% higher at the start of the year than in the same period last year. This also shows that many sellers are pricing attractively enough to tempt buyers who were hesitant to commit a year ago when the outlook for mortgage rates and buyer affordability was much more uncertain.
More new sellers are now entering the market and with more confident pricing. It is important that sellers who are keen to find a buyer, don’t get carried away with this New Year enthusiasm when setting their price expectations. Elevated mortgage rates and the wider cost-of-living squeeze are still limiting buyers’ spending power.
Accurate and realistic pricing for their local area is the recipe for success for sellers looking to move quickly in 2024.
Since the 27th December, Rightmove has seen nine of it’s ten busiest days for prospective movers beginning the process of getting a Mortgage in Principle, to see how much they are likely to be able to borrow form a lender and therefore the type of home they may be able to afford. January is on course to be the busiest month for people getting a mortgage in Principal on Rightmove since the service was launched in 2022. Whilst it is early days, this is another positive early sign that future movers are getting their budgets and plans in place.
The average 5 year fixed mortgage rate is now 4.86%, compared to the peak of 6.11% in July last year. As some best-buy rates edge closer to 4% and a first Base Rate cut since 2020 is expected later this year, there is overall a more stable backdrop for the mortgage market that this time last year.
David Phillip commented “after a stop-start market in 2023, initial signs suggest a smoother year for movers in 2024. More new sellers are entering the market and with more confidence in pricing – it is key that sellers who are keen to find a quick buyer price realistically and don’t get too carried away with their price expectations. We have a database of people looking to move to the North Leeds and Wharfedale area, and early activity in 2024 suggests an improved market on 2024”
David Phillip FRICS has been selling and marketing properties for over 30 years – if you would like a free, no-obligation market appraisal, call David Phillip Estate Agents on 0114 676 400. W: davidphillip.co.uk
Covering Bramhope, Adel, Cookridge, Otley and Pool-in-Wharfedale.