Putterills April Update
There appears to be a tempting window of opportunity for those who are considering a move to act now before these distractions arrive. The Euro 2024 football tournament and the Olympics this summer, likely followed by a General Election during the second half of the year, will add more buyer distractions than usual.
As we step into the brighter days of spring, I've noticed a palpable shift in the air concerning the property market. The latest figures are in, and they're intriguing: the average asking price of property coming to the market has risen by 1.1% this month, an increase of £4,207, bringing it to a near-record £372,324. This figure is just a whisper away from the record set in May 2023. More notably, this represents the highest annual rate of price growth (+1.7%) we've observed in the last twelve months.
The surge in activity isn't uniform across all sectors, however. It's predominantly driven by the largest homes—what we call the "top-of-the-ladder" sector—which has seen its most robust start to the year since 2014 in terms of price growth. But while these larger homes are reaching new heights, the market remains sensitive, especially in the realms more reliant on mortgages, such as the first-time buyers
and second-steppers.
Figure supplied by Rightmove
The influx of new sellers is notably higher, up by 12% compared to last year, and sales agreed have increased by 13%. This revival is most pronounced in the top-of-the-ladder sector, where the number of new sellers has soared by 18% and sales agreed by 20%. It's a clear indicator that confidence is returning, and people are eager to move, possibly spurred by the anticipation of a busy summer filled with sporting events and a likely general election.
On a personal note, Thursday, March 28th, marked a standout moment for me and my colleagues across the industry. It saw the highest number of new sellers entering the market in a single day so far in 2024. This remarkable spike reminds us of the dynamism inherent in the property market, a dynamism that seemed all but muted just a year ago.
Despite these optimistic signs, challenges remain. High mortgage rates continue to pinch, and the market's overall sensitivity to price adjustments speaks volumes about the varied speeds at which different segments operate. For many, especially in the more mortgage-dependent sectors, the landscape is tougher, with more modest increases in new listings and sales agreed.
Figure supplied by Rightmove
For those contemplating a move, now might be an opportune time. The landscape ahead is filled with potential distractions—the Euro 2024 football tournament and the Olympics this summer, likely followed by a General Election during the second half of the year—that could sway attention away from property hunting. Yet, the current stability in the property and mortgage markets, combined with decent buyer choice and seller willingness to negotiate, suggests a window of opportunity that shouldn't be ignored.
Reflecting on these trends, it's clear that while the market has its complexities, the underlying currents are strong. Whether you're a seller looking to capitalize on this spike or a buyer navigating the nuanced terrain, understanding these dynamics can profoundly impact your decisions. It's about striking while the iron is hot, but also doing so with a clear understanding of the landscape, ensuring that when you make your move, it's both timely and well-informed.
