The stats are in ... What happened in the Gravesham Property Market in October 2023?
Traditionally, October has been a busier month for the property market compared to August and September. The rush to secure a new home before Christmas, tends to drive increased activity among house hunters. This year is no exception, with October witnessing more property sales compared to September, even with fewer homes marketed.
The Stats:
As we always do, let's compare this month's figures to those of 2019, a year considered the last 'normal' year before the turbulence of the past three years, marked by events such as the COVID-19 pandemic, a period of stamp duty exemptions, and political uncertainties.
In contrast to 2019, we've observed an 8% decrease in the number of properties listed for sale, and a more substantial 14% drop in the number of properties sold. However, there is still movement in the market, with 67% of properties sold compared to new properties hitting the market.
One noteworthy trend is the percentage of properties listed this October that have successfully sold, which stands at 86%. This is a significant increase from the 55% we saw in September, and it's only 1% lower than the same month in 2019.
This trend is also reflected in the overall property inventory for this month, which has experienced only a 5% reduction compared to a 16% reduction observed in August when compared to 2019. It will be interesting to see if this surge in sales continues because, logically, if more properties are listed and fewer are sold, the total inventory will rise, offering buyers a more diverse range of choices. In essence, we might be entering a buyers' market.
When considering in the past 12 months, the cost of living rising and interest rates having climbed significantly, buyers have become increasingly price-sensitive. Setting the right price from the outset is crucial. Homes that are realistically priced are still attracting multiple prospective buyers, and sellers are receiving stronger offers once the property is perceived as good value.
What M&M Has Experienced:
At M&M, we've personally witnessed a substantial increase in both new property listings and sales for October compared to 2019. Although the number of viewings per property has decreased, the appointments we're receiving involve serious buyers making offers and closing sales, which is an encouraging sign.
Towards the end of the month, we noticed a significant uptick in offers and sales agreements, as buyers set their sights on being in their new homes for the Christmas season.
Money & Mortgages:
Since our last market report in September, the Bank of England has once again maintained interest rates, marking the first time in nearly two years, with rates held at 5.25%. While this is the highest level since the 2008 financial crisis, it's far from the staggering 17% interest rates seen in 1979 (though it's essential to note that inflation was at 25% in the 1970s).
Inflation has remained steady at 6.7%, higher than the Bank of England's 2% target. Nevertheless, the gradual decline in the inflation rate has given lenders the confidence to reduce mortgage rates from their recent peak.
It's crucial to remember that these market conditions are observed nationwide. This means that if you're selling your home, you may need to consider accepting an offer lower than your initial expectations, but this can be leveraged to negotiate a favourable deal for your next purchase.
If you require more specific property information in your area or could benefit from mortgage advice, please don't hesitate to reach out to our office. We're here and ready to assist you.