Market Report June 2023

Market Report June 2023

Keep up to date with the latest developments and insights in the housing market

So summer is finally here, and the weather isn't the only thing that's been hotting up recently. At the start of the year, the usual doom and gloom voices were forecasting terrible times for the UK property industry, and the media was full of stories predicting a housing sector crash.

It turns out they were all very wrong. We know this because our day-to-day work helping people to buy and sell homes shows us just how busy things really are. There's also a lot of hard data out there that shows it's happening all over the UK.

Facts or stats?
Some statistics can be misleading. When you see a report in the media about property, it's often from a source that is one step removed from the action - perhaps from a building society or a government department.

However, the data that property portal Rightmove provides is the benchmark for our industry, because it's the most up-to-date and covers the whole market, from first-time buyers to high-end prestige properties.

So what's really going on right now, and how does it affect you?

Record highs
Rightmove’s latest 'House Price Index' report has revealed that across the UK the average price of new properties for sale jumped by 1.8% in May. This means house prices are at an all-time record high.

It's even more significant because the historic average increase in May is 1.0%, so things are much better for sellers than would usually be expected at this time of year.

This is a clear marker that the doom and gloom predictions at the beginning of 2023 were way off target and that there has been a much higher than expected level of market activity all through the year so far.

Why are house prices going up?
The simple answer is that the number of buyers who are enquiring about homes for sale is 3% higher than the normal levels of May 2019. Interest from first-time buyers is particularly higher than that average at 6% above pre-pandemic levels.

One reason for such strong buyer demand is that even in the face of the Bank of England raising interest rates for the 12th time in a row to stand at their highest level in nearly 15 years, there has actually been good news for those looking for a mortgage.

Average mortgage rates for a 5-year fixed, 15% deposit mortgage are now 4.56% compared to 5.89% last October, and the number of mortgages approved in the UK saw a sharp rise in the most recent figures available, with loan approvals for house purchases going up by 18%.

Local matters
Of course, what really matters is how these stats relate to you, whether you're selling or buying.

A seller will be pleased that there is plenty of demand and that property prices are holding up nicely. While this might not sound so good for a buyer, it does mean that in these conditions, more people want to sell, so there are more homes to choose from.

One of the big trends in property for 2023 has been tagged the 'hyper local' effect. What this really means is that even in the same town or village, there can be a great deal of difference in the price buyers will be prepared to pay for a home.

This trend is being seen everywhere and it's certainly a big factor across the whole of North Wales. That's why it's essential to listen to the help and advice a knowledgeable local estate agent can give you.

A perfect example is the news that online-only estate agent Purplebricks has agreed to sell its business and assets for the token sum of £1, having previously been valued at more than £800m.

We take no pleasure in the failure of any business, but it does seem to show that people know the value of an estate agent who listens, treats everyone as an individual, and perhaps most importantly, really cares about doing the best for their clients.

If you'd like to know more about what's really going on in the property market over a significant area from Denbighshire and Conwy through to Flintshire and everywhere in between, get in touch with us because we'd love to help.

Copyright LL Estates

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