New year, new home? If you are buying or selling, it’s important to be aware of the current state of the market and this year’s housing trends to make sure you get the best deal for your property.
Here, we take a look at what’s in store for 2024 so whether you are gearing up for a springtime sale or ready to sell now, you can complete the process with confidence.
How is the market performing?
October and November showed positive signs within the marketplace with sales and new instructions performing better than expected. The market conditions now are more in line with pre-covid markets, following the abnormality and volatility of the market immediately after covid. However, sellers need to remember that it is currently a buyer’s market and properties will take a longer time to sell.
Are interest rates having an impact?
The Bank of England raised interest rates to 5.25% in August, the highest level in 15 years, in a bid to bring down high inflation. The base rate stayed at 5.25% for the remainder of 2023 and future decisions will be watched closely by buyers concerned about mortgage rates.
The stabilisation of the base rate is having a positive effect on the market at the moment, with many believing that interest rates have peaked. With inflation yet to meet its 2% target, we anticipate that the static base rate could continue for some time in 2024. Any reduction in the base rate is likely to fire up the £450,000 to £650,000 market which has been a little slow over recent months as owners have been hesitant to sell and potentially take on a bigger mortgage.
What price can I expect my house to sell for?
House prices have been falling steadily over the last 12 months and the Office for Budget Responsibility has stated that property prices are likely to fall by almost 5% in 2024. According to the UK House Price Index Wales, the average price of a property in Wales was £214,100 in October 2023 but there are regional variations: average house prices rose by 1.4% in Cardiff to £267,605 in the year to October 2023.
It’s important to remember that it is a buyer’s market and it is likely that your property will sell below the asking price. Typically, we are seeing buyers offering between 5% and 8% below the asking price and agreed sale prices which are 3% below the asking price.
Will political promises change anything?
In the Autumn Statement, the government made the decision to extend its mortgage guarantee scheme until June 2025 which helps those with small deposits to buy a home. As reported in The Times, The Guardian and other news outlets, it appears that the government is set to go a step further by offering support for long fixed-term mortgages or introducing a new version of the help to buy scheme.
A general election is very likely to happen this year and housing policies could be high on the agenda. While most promises are geared towards buyers, particularly first-time buyers, sellers should be alert to any changes that could impact their sales.
At Thomas H Wood, we have over 50 years’ experience of helping people successfully sell and buy homes in Whitchurch, Radyr and the wider Cardiff area and we are ready to help you make the move in 2024. If you are thinking about selling, give us a call, pop into our Radyr or Whitchurch branch, or visit www.thomashwood.com/selling-2/