Property market improving but buyers remain price sensitive .
Lower mortgage rates gave the housing market a boost in February. This was down to supply and sales all moving higher, Zoopla claims.
The portal’s latest House Price Index shows sales agreed were up 15% annually in February. Stock for sale rose by 21%.
Zoopla (https://www.zoopla.co.uk/) said this was down to falling mortgage rates. This has boosted buyer purchasing power.
Sales momentum has been recovering for five months. This has prompted the property website to predict that the market is on track for 10% more sales in 2024. More than last year’s £1.1m.
But it cautioned that asking price reductions, while lower than last year, remain above average, as buyers remain cost sensitive.
Asking price reductions of 5% or more are greatest in the South East and East of England, Zoopla said.
The average estate agent is agreeing 6 new sales a month up from 5.2 this time last year.
That is feeding into prices, Zoopla said, with average values down 0.5% annually to £263,600.
It suggests that a “three-speed” housing market has emerged, with the Eastern, South East and South West regions, outside London, registering the largest annual falls, London remaining most expensive and the rest of the UK seeing limited declines.
What does Zoopla’s Exe Director think?
Property market improving but buyers remain price sensitive .
Richard Donnell, executive director at Zoopla, said: “The housing market has proved very resilient to higher mortgage rates and cost of living pressures. More sales and more sellers shows growing confidence amongst household. There is also evidence that 4-5% mortgage rates are not a barrier to improving market conditions.
“Firstly, the momentum in new sales being agreed has been building for the last 5 months. Secondly, the sales market is on track for 1.1m sales over 2024. This is supported by new sellers coming to the market. While sales are set to increase we don’t expect house price growth to accelerate further in 2024.”
It comes as the latest member data from Propertymark suggests buyer registrations rose 120% between December 2023 and January 2024 – albeit boosted by the quieter Christmas period – and new supply was up 79% to eight listings per branch.
But Nathan Emerson, chief executive of the agency trade body, warned: “There remains a mismatch between valuations and market expectations, with most members noting that properties are still selling at below asking price.”
What do Jukes Estate Agents Harlow think?
Co owner Geoff Flewers says: “I must sound like a record with a crack in it.” “The truth of the matter is that over valuing is still rife in Harlow”. We were called out to a Harlow valuation last week where the owner had emailed 5 agents including ourselves”. “He had stated in his email that the considered the property to be worth £350,000 – £400,000”. “On doing our research, the first thing that became apparent was that nothing had ever sold for more than £340,000 and that was in much better condition”. “We valued it at £280,000 – £300,000 and the other four agents all valued it at £350,000 or more!”
Lee Venables who is also a co owner of Jukes Estate Agents Harlow continued: “This is a common practice unfortunately,” “Firstly, they do this just to get the instruction.” “Secondly, once they have got the instruction, a few weeks in they talk about price reductions.” Thirdly, they either knew it couldn’t be worth £350,000, or do not bother to check!” “Finally, we are delighted to say we won the instruction!”