House prices see biggest January rise since 2020
The beginning of 2024 has seen a flurry of activity in the real estate market, with home-hunters already gearing up for a year of potential moves, indicating a positive trend in the housing market.
Current Market Snapshot:
Increased Property Listings:
- The number of new properties coming onto the market for sale is higher than in the first week of January last year.
- Demand from potential homebuyers has also risen compared to the previous year.
Mortgage Inquiries on the Rise:
- Many individuals are inquiring about getting a Mortgage in Principle, with Rightmove experiencing high activity.
- January is anticipated to be the busiest month for Mortgage in Principle requests since the service was launched in 2022.
House Price Data:
New Year Bounce in Asking Prices:
- The average asking price of a home in Great Britain has seen the most significant New Year bounce since 2020.
- It has risen by £4,571 (+1.3%) this month, reaching almost £360,000.
Realistic Seller Expectations:
- Despite the rise in asking prices, they are still lower than this time last year.
- Sellers seem to be realistic about their price expectations as the market continues to recover from the impact of historically higher mortgage rates.
Regional Variations:
- Regional variations exist across Great Britain in average house prices.
Predictions for 2024 Homebuyers:
Marginal Dip in Average Asking Prices Predicted:
- Prices typically rise from a quiet December into a busier January, and a 1% lower national average asking price is predicted by the end of the year.
- Good demand at the right price may prevent a more significant drop in prices in 2024.
Increased Property Listings:
- The number of homes coming to market for sale is 15% higher than at the start of the previous year
- The North East and South West regions have seen the most significant increase in new listings.
Stable Mortgage Market:
- Mortgage rates have continued to edge down, providing a more stable backdrop for the mortgage market compared to the previous year.
- Lenders are offering competitive deals, indicating a positive trend in average rates.
Current Housing Market for Home Sellers:
More Sales Agreements:
- Mortgage rates have continued to edge down, providing a more stable backdrop for the mortgage market compared to the previous year.
- Sellers are pricing attractively, leading to increased sales agreements.
Increased Buyer Demand:
- The number of potential buyers contacting estate agents in the first week of 2024 is 5% higher than in the same period last year.
- Growth in buyer activity is strongest in London and the North East.
Competitive Pricing Key for Sellers:
- Despite increased buyer activity, pricing competitively is crucial for sellers, as the number of homes coming to market is outpacing the rise in buyer inquiries.
- Elevated mortgage rates and the cost-of-living squeeze emphasize the importance of accurate and realistic pricing.
The real estate market is showing signs of vitality at the beginning of 2024, with increased buyer activity, higher sales agreements, and a positive trend in mortgage rates. Sellers are encouraged to price competitively for a successful move in the current market conditions.
Sourced from Rightmove
