What's Next for Prices Amidst Turbulent Times
Sales Director, Jaker delivers a comprehensive analysis of the 2023 property market in this informative video update. Discover how the market has weathered recent challenges and what the future holds for property prices. Gain insights into key factors influencing the market, including interest rates, inventory levels, and more.
Market Update Highlights
In early July, we examined data from June, and what immediately stood out was the property market's resilience in the face of recent challenges. Let's explore what we're seeing in the property market in 2023.
Navigating Turbulent Times
The property market has weathered a series of challenges over the past 12 to 18 months. Geopolitical issues, political uncertainty, rampant inflation, and a rapid increase in interest rates have all played their part in creating a turbulent environment for both sellers and buyers.
Summer Months: A Brief Respite
Traditionally, July and August are quieter months in the property market, as people go on summer holidays. However, despite the seasonality, we've observed that the number of properties coming to market and sales agreed during these months held up well compared to the previous year.
Price Reductions on the Rise
One noticeable trend we've witnessed is the increasing number of properties reducing their prices. In August 2023, there were 60% more price reductions compared to the previous year. This trend is primarily driven by the higher number of properties available in the market, which has reduced the sense of urgency among buyers.
Regional vs. National Trends
Regionally, property prices have remained relatively stable compared to the previous year. However, national data sources such as Zoopla and the Nationwide indicate price declines, particularly in the southern part of the country. It's worth noting that regional data may eventually align with this national trend.
Factors Affecting Future Prices
Looking ahead, several factors will influence future price movements. These include a growing population, a shortage of new properties, and continued mortgage lending appetite. One critical variable to watch is interest rates. If they stabilize at around 5.5%, as some predict, we may see prices begin to stabilize as well.
