Year-End Property Market Update: Reflecting on 2023 and Predicting 2024
As we find ourselves in the last month of the year, it's time to look back at the twists and turns the property market has taken in 2023. In this month's market update, we'll delve into the performance of the property market over the past year and then turn our attention to what could be in store for 2024.
A Year of Uncertainty: January to November Overview
The year kicked off with a cloud of uncertainty for both sellers and buyers. The Bank of England's consecutive interest rate hikes led to an increase in mortgage rates, sparking concerns about the economy and the housing market's trajectory in 2023. Despite these challenges, sellers and buyers faced a tough journey throughout the year.
Resilience Amidst Challenges: Overcoming Economic Headwinds
Despite the backdrop of high inflation and a cost-of-living crisis affecting everyone, the housing market surprised observers with its resilience. While there was a 10% year-on-year drop in sales compared to 2022 and a 5% dip in house prices, the figures were less dramatic than many had predicted.
November Surprises: Defying Expectations
In November, the market surpassed expectations, with over 1700 sales agreed across the region. This figure slightly exceeded October and mirrored the activity levels seen in traditionally busier months like September and October. Despite the usual slowdown expected in November, the market showcased its resilience.
Challenges and Evidence of Strain: A Deeper Dive
However, the market couldn't fully escape the impact of increasing mortgage rates and the cost-of-living crisis, evident in the 10% year-on-year drop in sales. The average time to find a buyer also extended from 45 to 66 days, showcasing the challenges faced by both sellers and buyers.
Looking Ahead to 2024: Predictions and Stabilization
With mortgage lenders still open to lending at reduced rates, the prediction is that the market will continue its stabilization trend witnessed over the past few months. The anticipation is that there won't be significant further price falls in 2024. Whether this prediction holds true will unfold as we progress into the new year. Keep watching these videos for more updates.
