Property Market Update – April 2023
By Steve Cook – Partner Clarke Gammon
Number of property sales return to pre-pandemic levels
If like many of the local people I’ve spoken to this month, you’re thinking of a home move this spring, you will no doubt have seen a good deal of news about the property market, from rising interest rates, to what might happen to house prices.
In this month’s Property Market Update, I’ll try to make some sense of what’s really happening with the property market in and around our office locations in Guildford, Haslemere, and Liphook. In last month’s update, I talked about how the market has continued to recover as the traditionally busy spring market started to show signs of a return.
April is traditionally when the spring market is at its peak, and has taken a big leap forward again this month, following last month’s early signs of increased activity.
Historically, April has always been one of the busiest months for sellers putting their homes on the market, and despite the sometimes negative press, 2023 has seen the number of sales agreed very nearly back to pre-pandemic levels.
Confirming our own experience of market activity, the property portal Rightmove recently reported that sales agreed were just 1% lower last month than in March 2019.
Comparing what’s happening today with the same period in 2019 makes sense, as it gives an indicator of what we should expect from a more ‘normal’ seasonal property market, as this was before the start of the pandemic.
The return to pre-pandemic market drivers is an important milestone, following the unprecedented market conditions of the past few years.
The Rightmove report makes a similar point, with their property data expert, Tim Bannister, writing: “The housing market is remaining surprisingly robust given the economic factors that have affected home-movers over the last six months. While the market is not moving at the exceptional pace that it has been over the last couple of years, it’s a positive sign that sales at a national level are being agreed at the same rate as the last more normal market of 2019”
Return to London
During the pandemic we noticed a significant move of urban buyers moving to the coast or more rural locations, I wrote about this at the time, and the press referred to this trend as the ‘search for space’ with many upping sticks and moving the family to far-flung places all around the country.
It seems that this trend is now in reverse with people now returning to the cities. Rightmoves data shows that much of the increase in sales agreed seen in recent weeks has been in flats, particularly in London. Across all property types, they’re up by 11% when compared to March 2019. Sales agreed on flats alone in the capital are up 23%, compared to the same period in 2019.
Mortgage update
The Bank of England, in its attempt to control inflation, have continued to increase the bank interest rate to its highest level in 14 years. Despite this, the increase hasn’t fed through to mortgage rates recently, which have started to edge down in the past few months. The average 5-year fixed rate for a home-buyer with a 15% deposit was as high as 5.89% in October, but in March this reduced to 4.63%. Now is the time to shop around for the best mortgage deals if you’re thinking of buying a home.
Considering a move this Spring?
As the weather is warming up, so too is the property market, we are seeing an increased number of properties coming to the market and the best of the bunch always move quickly.
If you are thinking of buying or selling your property, or need some help or advice on property related matters, please give me a call at our Liphook office, I’m always happy to help.
Steve Cook
Partner Clarke Gammon
See what our customers say about us – See our customer reviews.
