The average asking price of newly listed property dropped by 2.1% (-£7,862) in December to £359,137, this is a bigger dip than usual at this time of year as sellers who are determined to find a buyer quickly adjust their expectations and adapt to a less frenzied housing market, this means by the end of 2022 prices were 5.6% higher than the previous month and slightly below year ago versus 6.3% annual growth in 2021. Yorkshire and Humberside saw a reduction of 2.5% but annual growth of 7.3% which is one of the UK’s most positive movements and according to Zoopla leaves Leeds in 6th position in cities in the UK, behind Nottingham, Manchester, Birmingham, Liverpool and Leicester.
Economic headwinds including rapidly rising mortgage rates, cost of living pressures and lower consumer confidence mean that some would-be buyers may have paused their plans in the very short term, however over the past three weeks, the number of people enquiring to Estate agents is up 4% on the same period in 2019, and there are also signs that discretionary buyers will have used the Christmas/New Year period to weigh up their options – the number of views of homes for sale on Rightmove is up 11% on last year. This indicates that there are many ready-to-go buyers, monitoring and waiting for this year after the uncertain last few months of 2022 following the September mini-budget. Zoopla predicts that the sharp fall in demand has now plateaued – some buyers will also have thought that they may get a better fixed-rate mortgage deal and a more stable outlook by waiting until the beginning of this year. Rightmove’s data suggests that there are many ready-to-go movers out there waiting for what they feel to be the right time to enter the market in 2023.
Tim Bannister, Rightmove’s Director of Property Science predicts a more normal market in 2023, however, affordability constraints will prevail in some segments and sectors of the market much more than others which makes a national average price prediction for new to the market properties more difficult than usual this year. This will lead to a more pronounced hyper-local market , where one side of a city, town or even street could fare better, depending on the types of property available and the desirability and affordability of the exact location.
After many months of having to act extremely quickly, there may be less urgency in the market as buyers wait for the right home to become available for their needs and some sellers will hold out hoping for a price that matches their expectations – this could lead to a stand-off in the early weeks of 2023 between some sellers who are in no rush to drop their prices, and those more hesitant buyers. This may lead to homes taking longer to sell at the beginning of this year and a return to the more normal time to find a buyer.
2023 will see a more even balance between supply and demand. Rightmove don’t expect a surge in forced sales which would cause a glut of properties for sale and contribute to more significant price falls this year, however there is a group of buyers who are very keen to purchase before their mortgage deals that have been pre-approved run out. – this is reflected in their modest average fall of 2% next year.
Buyer interest remains stronger in more urban settings where jobs are being created and there are more services. Family housing in city suburbs and commuter areas have registered above-average demand over the last year, while demand in City Centres has remained weaker – this is very good news for the North Leeds area, where continued employment growth will stimulate housing demand over 2023 in these affordable city regions.
Post pandemic the pricing of flats has underperformed the rest of the market as people looked for space and gardens exacerbated by the concerns over cladding and leasehold charges – Zoopla expect an increase in demand for apartments as buyers seek better value for money. This will be improved as the Government moves to ensure cladding problems are remediated in most buildings – only a small proportion of the UK’s apartments are now impacted by cladding meaning opportunities for buyers seeking better value for money in 2023.
David Phillip commented “after two and a half years of frenetic activity, it is easy to forget that having multiple bidders on a property was the exception rather than the norm in pre-pandemic years, and there is likely to be a small period of readjustment for home-movers as properties take longer to find the right buyer – there are however still many people looking to move, we launched Dale Cottage in Bramhope yesterday on Rightmove and the Key portals and have already arranged 7 viewings, a mixture of enquiries from the portals but also from our relevant and fresh database.
“if you are considering selling, it is important to price and present your property correctly, and work with a good local Estate Agent who knows every corner of the area – this is vital for both buyers and sellers”
If you are considering selling your home, choose an estate Agent that has over 30 years’ experience valuing and selling homes in North and West Yorkshire – call David Phillip FRICS for a free market appraisal on 01134 676 400 a: 86, Leeds Road, Bramhope, Leeds, LS16 9AN w: davidphillip.co.uk
Covering Bramhope, Adel, Cookridge, Pool-in Wharfedale and Otley