The Autumn selling season is indeed a pivotal time for the property market, and it looks like 2024 is shaping up to be more active compared to 2023. A few key factors are driving this increased activity:
- Easing Mortgage Rates and Inflation: The downward trend in mortgage rates, combined with inflation falling closer to the 2% target, has made buying more affordable for many. The first Base Rate cut in four years, announced in August, also provided a confidence boost for both buyers and sellers.
- Increased Housing Supply: There are more homes available for sale now than in recent years, with estate agents reporting the highest number of listings since 2014. This gives buyers a wider choice and potentially more bargaining power.
- Rising Buyer Interest: These favourable conditions have led to a 15% rise in inquiries to estate agents and a 27% increase in sales agreed compared to the same time in 2023. This uptick reflects pent-up demand, with many potential buyers and sellers now acting after postponing their plans last year.
However, as Tim Bannister (Rightmove’s property expert) points out, the market still faces uncertainties, especially ahead of the Autumn Statement on 30 October. This fiscal plan could introduce measures that might impact various sectors of the market as the year progresses. The continued market momentum will depend largely on how these uncertainties unfold and how they affect buyer and seller sentiment.
Despite the increased interest in the property market, it’s taking longer for sellers to secure a buyer, with an average of 60 days on the market, three days longer than in 2023. This suggests that while buyer inquiries are up, many are being more selective in their decisions, taking time to find the right home.
Estate agents emphasize the importance of pricing homes correctly from the outset. Sellers should avoid the temptation to overprice their properties in the hope of capitalizing on increased activity, as this could lead to a need for price reductions later. A well-priced home tends to attract more immediate interest, increasing the chances of a quicker sale.
Tim Bannister underscores this by saying that early Autumn movers are benefiting from the improved market conditions and getting first choice of quality homes. However, homeowners considering listing their properties soon shouldn’t be overly optimistic about the increased activity. Affordability constraints are still a major factor, and many buyers are carefully browsing through the higher number of listings to ensure they get the best deal.
With buyers having more options and being price-conscious, competitive pricing remains key to securing a sale within a reasonable timeframe.