Insights into the Current Housing Market

As we step into the second quarter of 2024, it's a good time to assess the housing market's status. Rightmove notes a surge in new sellers during the Easter period, signalling robust demand for property. Zoopla's March House Price Index indicates a slowdown in the decline of house prices to -0.3%. 

Increased Seller Activity
Rightmove reports a peak in new seller listings on 28 March, marking the third-largest surge since August 2020. This surge, with a 45% increase over the previous week, reflects sellers' eagerness to attract buyers during the Easter holidays.

Housing Price Trends
According to Zoopla's March 2024 report, the UK's average house price was £263,900 in February 2024, showing a slight increase from the previous month despite a small decrease compared to the same time last year. There's a noticeable rise in house price inflation across regions compared to six months ago, indicating a stabilising market amidst increased sales activity and changing mortgage rates.

Positive Market Activity
Zoopla's latest House Price Index indicates a positive trend in housing market activity, with confirmed sales rising by 9% compared to the previous year. The first quarter of 2024 saw a 7% increase in sales relative to the same period in 2023, leading to more homeowners listing their properties for sale.

Factors Driving Market Sentiment
The housing market's optimism is fuelled by accelerated real wage growth and a strong employment sector, boosting consumer confidence. Additionally, the average interest rate for a five-year fixed-rate mortgage at a 75% loan-to-value ratio has decreased to 4.4%.

Future Outlook
Despite growing optimism and increased transactions, buyers remain price-sensitive, engaging in negotiations. Approximately 41% of completed sales in March 2024 were finalised at least 5% below the original listing price. This trend suggests that housing price inflation will stabilise throughout 2024.

Impact on Sellers
For sellers to capitalise on market improvements and secure sales, realistic property pricing is essential. Properties lingering on the market for extended periods may require price reductions to attract buyers, though adjustments should align with the seller's financial goals for their next property acquisition.

How Does This Affect You? To understand how current housing market conditions affect you and your property, contact our team at Lime Property on 01482 216060.