Navigating the Spring Housing Market: Is It Time to Make Your Move?

Spring is traditionally a time of renewal and movement, and the housing market this season is no exception. Many are wondering if now is the opportune moment to find their next home, especially with a potentially quieter summer on the horizon. The convergence of the holiday season, significant sports events like Euro 2024 and the Olympics, and the likelihood of a General Election later this year could distract prospective buyers.

According to Tim Bannister, a property expert, there's a "tempting window of opportunity" right now for those contemplating a move to act before these distractions take centre stage.

Recent Trends in Housing Prices

Over the latter half of 2023, we observed a slight dip in average asking prices, concluding the year about 1% lower than the previous year. However, the momentum changed as we entered 2024. A surge in listings began on Boxing Day 2023, kick-starting a robust spring selling season. This influx has pushed average asking prices up by 1.7% from last year to date.

The upswing in market activity at the start of this year has undoubtedly influenced these price adjustments. Sellers entering the market now seem less inclined to drop their asking prices, aiding in this upward trend. Currently, the average asking price for homes in Britain has climbed to £372,324, just shy of the record high set in May 2023.

Why the Top End of the Market Is Buzzing

Post the economic tremors caused by the mini-budget in September 2022, which sharply drove up mortgage rates, those eyeing top-tier homes momentarily held off on their buying plans. This sector has now awakened from its dormancy, thanks to a release of pent-up demand. There's been an 18% increase in the number of larger homes hitting the market compared to last year, coupled with a notable 20% rise in sales agreements for these properties.

This resurgence is allowing sellers at the higher end to position their asking prices more actively than in the previous year. Tim Bannister, a property expert, notes that this segment's movers, generally less affected by higher mortgage rates and richer in equity, are finding it easier to proceed with transactions. While some buyers might still feel the pinch of cost-of-living increases and elevated mortgage rates, overall market conditions have stabilised, offering better prospects for both sellers and buyers.

Stability in the Mortgage Market

The mortgage landscape is currently experiencing greater stability, with fewer dramatic rate changes than before. This steadiness is encouraging more people to proceed with their housing plans, undeterred by the unpredictability that previously led many to pause.

For homeowners contemplating whether now is a suitable time to sell or move, the market offers encouraging signs. With strategic pricing and a comprehensive understanding of market dynamics, it's possible to successfully navigate through the complexities of today’s housing market. Whether upgrading to a larger home or downsizing, the current climate is ripe with opportunity for those ready to take the plunge.

Written by Veera Josey, 25th April 2024

Source: Rightmove