Navigating the Housing Market.

There has been considerable media coverage over recent months about declining house prices and the fall in the volume of sales and mortgage approvals.

The summer months are traditionally quiet and with increasing mortgage rates together with the general economic climate it is not surprising that confidence in the housing market has fallen. However, despite the average asking price falling 5.3% from their height in August 2022, it is worth remembering that average asking prices are still 19% higher than they were in August 2019 before the Covid pandemic. Indeed, the residential market is and will aways be cyclical, but it is clearly in a period of readjustment.

For any prospective buyer the fall in prices will of course be welcome with equity rich and cash buyers being in a particularly strong position. Opinions are divided as to whether interest rates will rise once more, there are however signs of improvement in the commercial lending market with greater competition between lenders and more appealing mortgage deals becoming available. It is now acknowledged that mortgage rates will not be returning to their low levels of the past 10 years however it is not anticipated, given the strength of the employment market, that there will be numerous repossessions coming to the market which have been the cause of previous property market crashes.

Pricing is proving sensitive and the key to a successful sale is realistic pricing from the outset. With fewer serious buyers it is important that sellers price competitively for the local market conditions. Indeed, we are still seeing competition between buyers where a realistic asking price is set whilst other sellers who are being too optimistic are receiving little or no interest. This is particularly important where prices may fall further and there is a more seasonal local marke

Moving house is an art rather than a science and there are benefits for buyers of a less frenzied housing market. Indeed, there are now more properties on the market and by keeping in contact with estate agents local to your search area you will ensure that you be kept in mind for new properties coming to the market. Decision making is less pressurised and where you are involved in a chain it is important to focus upon the differences in value rather than the headline figures for a successful transaction.

At Green Lizard we are always ready to assist with your sale or purchase and support you throughout the process.