HOUSING MARKET HEATS UP: STRONGEST JANUARY RISE IN PRICES SINCE 2020
Monday January 15, 2024
January Surge in House Prices Since 2020
The dawn of 2024 unveils an optimistic trajectory for the housing market, marked by the most robust January surge in house prices since 2020. Homebuyers are proactively engaging in the market, fostering a promising start to the year.
Buoyant Market Activity
Reports from industry sources indicate a bustling start to the year, with estate agents noting a significant increase in new properties entering the market for sale. This surge surpasses the figures recorded in the first week of January the previous year, indicating heightened market activity.
Growing Buyer Demand
Simultaneously, there is a notable rise in demand from potential buyers compared to the previous year. This surge in buyer interest sets a positive tone for the overall market dynamics.
Rising Interest in Mortgage Pre-Approvals
Further amplifying the positive sentiment is the increasing number of individuals initiating the process of obtaining a Mortgage in Principle. Online platforms report heightened activity, with several of their busiest days occurring since late December. This trend bodes well for the housing market’s trajectory in the coming months.
Significant Increase in Seller Asking Prices
Adding to the positive narrative, January witnesses the most substantial monthly increase in new seller asking prices since 2020. The average asking price for a home in Great Britain has risen this month, showcasing sellers adopting realistic pricing strategies amid the ongoing recovery from historically higher mortgage rates.
Predictions and Market Outlook for 2024
Marginal Dip in Average Asking Prices
While predictions suggest a marginal dip in average asking prices by the end of the year, with a projected 1% decrease nationally, the strong underlying demand from buyers at the right price makes a significant drop in prices in 2024 less likely.
Increased Property Listings and Regional Growth
The number of new property listings is notably higher than the previous year, indicating a 15% increase. Certain regions are experiencing significant growth, contributing to a diverse and active market.
Stable Mortgage Market Backdrop
The mortgage market provides a stable backdrop, with rates continuing to edge down. Lenders intensify competition, offering attractive deals. The outlook suggests a further decrease in average rates in the coming weeks.
Promising Scenario for Sellers
The current housing market for sellers is promising, with a 20% increase in the number of sales being agreed compared to the same period last year. Buyer demand has risen by 5%, with particularly strong growth in specific areas.
Pricing Competitively Remains Crucial
Pricing competitively remains crucial, as the number of homes coming to market outpaces the rise in buyer inquiries. Accurate and realistic pricing is emphasized, considering the impact of elevated mortgage rates and the broader cost-of-living squeeze.
2024 Outlook: Building Momentum
Despite a potential temporary slowdown in activity leading up to the election in the second half of 2024, the current data points toward building momentum. The housing market is poised for a positive trajectory, offering a favorable landscape for both buyers and sellers in the coming months.