Housing Market Holding Firm As We Enter May 2023

Housing Market Holding Firm As We Enter May 2023

Information from Rightmove suggests that the average asking price for property as of April 2023 is £366,247. This represents an increase of 0.2% compared to the March 2023 figure and is a rise of 1.7% compared to the April 2022 figure.
 

For homes of interest to first-time buyers, the average price in April 2023 stood at £224,963, which is a 0.2% rise on the monthly figure but a 2% increase on the April 2022 level. For “second stepper” buyers, the average price stands at £339,359, a monthly rise of 0.7% and an annual increase of 1.9%. For “top of the ladder” buyers, the average monthly price in April 2022 was £666,566, representing an increase of 1.2% and an annual rise of 1.7%.
 

The Rightmove property expert Tim Bannister, said “Estate agents are reporting that while sellers in recent years might have seen multiple bids on their home, many understand the need to tempt Spring buyers with a competitive price in the current housing market. The unexpectedly stable conditions we’re seeing now may attract more sellers who had been considering a move in the last few years, but had been put off by the market’s frenetic pace.”
 

Tim continued by saying; “Those who have now decided to make a move should not wait around too long to make an enquiry if they see the right home for sale, as not only is the number of sales agreed is now back to pre-pandemic levels, but homes are also on average selling twelve days more quickly than at this time in 2019.”
 

First-time buyer movement affects the whole market

Concerning what this means for first-time buyers, Tim Bannister said, “More competition amongst mortgage lenders in the smaller deposit, higher loan-to-value ranges is positive news for those would-be first-time buyers who have saved up their deposit and can still afford to move. However, it remains a challenging environment to get onto the ladder, with new record average asking prices and higher borrowing costs to budget for than a year ago.”
 

While challenges remain for first-time buyers, it is positive to see optimism surrounding these buyers stepping onto the property ladder. This is excellent news for the market in general. Current homeowners looking to sell before moving up the ladder benefit from new buyers coming to the market.
 

Even if the home you sell isn’t at the level of first-time buyers, the household buying your home might sell theirs to a first-time buyer. Movement is crucial in the housing market, so positive news for first-time buyers is also pleasing for people who purchased their first house some time ago!
 

Contact Coakley & Theaker for all your Bury St Edmunds property market needs

At Coakley & Theaker, we aim to support the local community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today by calling us on 01284 769691.