Market Comment (February 2024)
While most people agree January 2024 was an extremely long month, February of this year has zipped by rather quickly. We’re now firmly settled into 2024, and looking forward to spring, more hours of sunshine and warmer temperatures. Things are far from perfect, but it is easy to see why many people have a sense of optimism about life now.
This cautious yet hopeful approach is also present in the UK housing market, and if you haven’t heard the latest stories which impact buyer and seller demand, Trading Places is here to ensure you are bang up to date.
Times are different for property buyers
You’d think not being able to arrange a mortgage or find a suitable home in their price range was the most frustrating aspect of homebuying for first time buyers (FTBs). Instead, it’s the attitude of established homeowners who refuse to acknowledge how massively different the scenario is to their day that leaves would-be homebuyers pulling their hair out.
A recent study found key differences to the situation facing FTBs today and the FTBs of the 1970s, many of whom are the parents of the current FTBs:
· 20% of modern-day buyers have moved home with parents or family members to save money for a deposit, a move made by just 4% of their 1970s counterparts
· 20% of present-day buyers have asked family members for help with their deposit, compared to 11% of the 1970s generation
· 19% of today’s FTBs advise homeowners to hold onto their home and pass it to the next generation
The last response is interesting, a move that would see the supply of homes fall lower, but could allow more people to have the confidence they need in having a home. Of course, personal circumstances are crucial in these matters, and that won’t be an option for many homeowners, or FTBs.
Stepping onto the property ladder is a massive step for people, but it’s very difficult at the moment. The challenges facing FTBs also impact homeowners looking to sell, so no matter what your circumstances are, it makes sense to seek help from a local property market specialist. For Leytonstone and surrounding areas, there is no better choice than Trading Places.
The UK’s slow selling times
It’s not always helpful to look at what happens in other countries, because home selling circumstances are very different. However, homeowners in the UK will inevitably roll their eyes at the average time for a property sale being 183 days here while in the United States, it is just 69 days.
In Canada, the average time is 90 days and in France, it takes an average of 105 days. Germany and the United Arab Emirates are close behind that timescale, which means there are many leading parts of the world where selling a home is notably faster than the UK.
Spain is a lot closer to the UK in average time, with the average sales period lasting 152 days, but even this represents a month less than what we see here.
The thing is, these figures are likely slowed by London, which means the average sales time for locals is even longer. There are no doubt parts of the UK home selling process can be improved on, but many people also take comfort in the legal process for such a wealthy commitment.
At Trading Places, we aim to work quickly, but more importantly, we work efficiently, giving you confidence at the sales process, at every step.
Rightmove bullish on importance of property pricing
It’s always interesting to hear the thoughts of Rightmove on the property market, and amidst modest increases in average prices and average new seller asking prices, the property portal believes the market is extremely price-sensitive these days.
This means accurate and honest valuations are vital, because homeowners entering the market with inflated asking prices in the hope of striking it lucky are missing out. If you are looking for a reliable valuation, turn to an experienced local estate agent who knows Leytonstone inside out.
Rightmove’s Tim Bannister says: “We said that February would be an important indicator for the year ahead, and the question was whether the Rightmove Boxing Day bounce in buyer activity would keep its spring into March or lose momentum. It's proved to be the former, with the number of sales agreed continuing to considerably outstrip last year.”
Tim Bannister concluded by saying: “Buyers now have more choice of property for sale and many are still very price-sensitive, with mortgage rates remaining elevated. Sellers who are serious about moving this year would be well-advised to ride this wave of increased buyer confidence with an attractive asking price before any pre-election jitters or unexpected events dampen the momentum.”
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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