July 2023 - DA11 and DA12 Market Update
What has happened in the DA11 and DA12 postcodes in July 2023? The stats are in ... What has sold and what has come to market?
July 2023 has seen less properties come to market and less sold properties when compared to July 2019 in DA11 and DA12.
We compare our figures to 2019 numbers as the last three years have been turbulent, with Covid, a ‘frenzied’ stamp duty free period and political uncertainty.
THE STATS
Whilst there has been a large reduction across the board in new listings & sold properties in July when we look at the year to date the reduction is a lot lower.
It is interesting to see that whilst properties new to market and sold have reduced considerably the ‘detailed views’ on Rightmove have only reduced by 9% indicating there is still a strong interest in the market.
There has only been a small reduction in the percentage of properties coming to market that are then sold indicating if you do want to move it’s the right time! Properties are selling despite the lower stock. 69% of stock listed is sold this year to date.
What does the above tell us?
The figures indicate that what is being listed is being sold which is great. It is interesting to see that whilst detailed views on Rightmove (the number of clicks on properties to see the full details) have decreased by 9% this month, the percentage number of sold properties to those listed only decreased by 3%, which indicates for another month, those out there looking are serious buyers.
The base rate has once again increased, making it 5.25%.
An interest rate rise impacts mortgage rates, meaning it costs more to borrow money, which we expect to have an impact on transactional volumes and prices, as illustrated in the numbers. We are yet to see homeowners who have been forced to sell, however if rates continue to rise, some may be forced to review the situation and weigh up their options. We expect the market to start showing signs of forced moves in the next 12 months as existing mortgage products start ending.
It is important to remember that this market condition is observed nationwide. This means that while you may need to consider accepting an offer lower than your initial expectations, you can leverage that offer to negotiate a relevant deal for your onward purchase.
The Halifax House Price Index for July was published on 7th August, which found that first-time buyer appetite remains high, with demand amongst the demographic growing despite market turbulence. For many first-time buyers, mortgage rates will need to continue to drop for them to achieve affordability criteria. Falling mortgage rates are likely to result in greater activity in the market, which will lead to house prices increasing. We have been advised by the Mortgage Advice Bureau that many lenders are now starting to reduce their pricing on mortgage products, with one lender reducing rates by up to 0.95% in one update this week.
Should you be interested in more specific property information in your road, or think you may benefit from some mortgage advice please do not hesitate to contact the office. We are here and ready to help.