Market Comment (October 2023)
We’re quickly moving to the end of the year, and while many in the UK housing market will be glad to see the back of 2023, there will be many challenges in the year ahead. It has never been more important for informed decisions, and at Trading Places, we are keen to provide as much insight into what is happening in the local and national market.
Surge in newly listed for sale stock
Amidst all the challenges in the housing market, the fact demand outstrips supply is a significant driving factor in rising prices and slow market movement. This has long been the case in the UK, so any time there is positive news on this front, it is easy to see why industry observers become more optimistic.
Analysis carried out by Get Agent indicates the level of new homes listed for sale is much higher than what it was at the start of 2023. In the first two weeks of October, 97,500 homes were listed for sale. In the first two weeks of the year, only 42, 825 were listed for sale. This represents a 128% increase.
Of course, it’s not exactly a like for like comparison. The January market isn’t the same as the October one, but there is a feeling more homeowners are looking to sell their home, which is good news for buyers.
CEO of GetAgent.co.uk, Colby Short, commented: “It’s been a tricky year for the property market and a high level of market uncertainty has seen both buyers and sellers act with hesitation, with many postponing their plans to transact as interest rates have risen. For many buyers, the cost of borrowing remains far higher than they are used to and this will ensure that an air of caution remains. However, it’s reassuring to see that many sellers are now pushing ahead with their plans to move and this has no doubt been in reaction to the interest rate freeze seen last month.”
Colby concluded by saying: “Of course, it’s important to remember that it remains a buyer's market at present and so patience is certainly a virtue when looking to sell, as well as a realistic approach to pricing.”
October asking prices rise but less than usual
It is vital to consider historical trends when looking at movements in the housing market. A modest increase in asking prices in October 2023 is good news on the whole, even if the average new seller asking price was only up by 0.5%. This was a rise of £1,950, moving to £368,231.
However, October is normally a month where asking prices rise. This is the smallest increase in average asking price since 2008, and with the historic norm for the month standing at 1.4%, this is minimal movement.
Tim Bannister, Rightmove’s Director of Property Science, spoke on this matter, saying: “New seller asking prices have seen a rise, as they usually do at this time of year following the summer holiday season. While this year’s much more subdued rise indicates that some new sellers are gradually heeding their agents’ advice to price competitively, agents report that other sellers still need to adjust their expectations on the price that they are likely to achieve in the current post-pandemic, lower-activity market, where six in ten homes are now selling rather than eight in ten.”
Good agents are proactive in this aspect, managing expectations and making sure homes are listed in a competitive manner. We know the local area well, and are well placed to advise buyers and sellers on how the market is performing.
Property sales have fallen
Of course, while it is good to see the number of homes listed for sale on the up, this is balanced with data which shows actual sales fell in the third quarter of the year.
Information provided by Street.co.uk shows a 12% fall in property sales in England and Wales in the last quarter. The figures also indicate a North-South divide across the country, but this is likely based on property prices, as opposed to geographical factors.
In the Greater London area, there was a 6% fall in property sales.
Heather Staff, Co-Founder of Street.co.uk, spoke on this topic, saying: “The regions experiencing the most significant drops in sold properties are also the regions with the highest average house prices - highlighting greater market stability in areas with a higher number of lower-priced properties.”
Heather continued by saying: “Higher mortgage rates appear to have a more pronounced effect on buying power in the South, where house prices are highest. As budgets are squeezed, mortgage costs rise and savings diminish, buyers in high-value regions face greater challenges.”
Whatever move you are looking to make, this year or next, rely on the Leytonstone agent who keeps you informed, and who is able to act decisively on your behalf.
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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