As January draws to a close, we are able to get a flavour of what’s in store for the local property market this year.
According to data recently released by HM Revenue and Customs, sales dipped by 3% in December 2022 when compared with November the same year. However, 101,920 homes were sold last month, a figure 1% higher than this time 2 years ago.
Considering everything that the nation faced in the tumultuous months at the end of last year, including the cost of living crisis, repeated interest rate rises and the disastrous September budget, December’s figures are hardly surprising.
Comfort, however, can be taken from the early activity we have seen since the return from the Christmas break.
In January 2023, Rightmove announced a 0.9% rise in asking prices, after several months of falls.
Following a decline in house prices towards the end of 2022, Rightmove’s latest house price index shows the average price tag for a house has now increased by £3,301.
While a rise in asking prices is expected in January, this is the highest at this time of year since 2020.
Average monthly mortgage payments for hard-pressed buyers continue to fall as mortgage interest rates soften, with some deals on offer below 5%. Further easing of mortgage interest rates are expected this year and may tempt more first-time buyers to make a purchase as 2023 progresses.
Simon Field of Ashwell Mortgage Services comments that “mortgage rates have continued to fall over the last week, and swap rates (the rate that lenders borrow money at) has also been falling over the last 3 months. This is a positive sign and it’s likely lenders will pass the savings on and reduce rates accordingly going forward.”
As an example of how rates have changed, a buyer with a 10% deposit could source potentially a 2-year fixed rate at the end of the first week of January at 5.24%. Two weeks later, the same buyer could now secure a rate of 4.81%.
Nick Wearmouth, Sales Director at Ashtons states: “The outlook for the year ahead is not without its challenges, but the trend in mortgage rates we are currently seeing is hugely encouraging. The market remains understocked with available properties. However, the Ashtons Group has been to value more properties this year than at the same point 12 months ago. We will see many of these homes come to the market in February and March which will fuel the early Spring market.”
Contact our expert team today to find out how to best navigate your property journey as we enter 2023.