Market Comment (April 2023)
With three Bank Holiday Mondays to look forward to in May, people naturally want to rush through the rest of April as quickly as possible. However, there is never a wrong time to reflect on what is happening in the housing market, and as you’d expect, there is a lot to take in.
First-time buyer houses reach record high
According to Rightmove, in a study released at the end of April 2023, the price of first-time buyer homes reached a record high of £224,963. There was also an increase in new seller asking prices, which rose to £366,247.
However, this was a modest increase, rising by 0.2% (an increase of £890). This slight rise suggests new sellers are aware of the challenges in the property market, and the housing market might be moving towards a slower level of activity, more in line with pre-pandemic levels.
Rightmove’s Tim Bannister said:
“Agents are reporting that many sellers have transitioned out of the frenzied multi-bid market mindset of recent years and understand the new need to tempt Spring buyers with a competitive price. The current unexpectedly stable conditions may tempt more sellers to enter the market who had been considering a move in the last few years but had been put off by its frenetic pace. Buyers may have struggled to find a home that suited their needs in the stock-constrained market of recent years and will now find more choices available.”
Tim concluded by saying; “However, those who have now decided to make a move should not wait around too long to make an enquiry if they see the right home for sale, as not only is the number of sales agreed now back to pre-pandemic levels, but homes are also on average selling twelve days more quickly than at this time in 2019.”
2023 Q1 figures show a drop in average house prices
According to the Property Market Index Review, the average property price across the UK for the first quarter of the year was £305,646. This represents a fall of 1.2% compared to the final quarter of 2022. However, compared with the opening quarter of 2022, house prices are 3.6% higher.
In London, the average property price stands at £569,522, representing a fall of 1.6% compared to Q4 of 2022. However, compared with Q1 in 2022, London house prices have risen by 1.8%.
Marc von Grundherr is a noted name in the London housing market, and he spoke about these figures. Marc said; “Buyers simply aren’t acting with the same intent following a sustained period of interest rate hikes, but we’re yet to see sellers fully accept this change in the landscape, with the gap between buyer purchasing power and seller asking prices at its largest since the third quarter of 2020. The result of this current market imbalance is also reflected in the sold price to asking price balance, with this gap widening so far this year as buyers refuse to overstretch to secure their desired property. While we expect this trend will persist over the course of the year as sellers adjust to the reality of current market conditions, we don’t predict any notable reduction in property values, rather a soft landing.”
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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