As you contemplate selling your house in 2024, it's crucial to stay informed about what is happening locally, and nationally, in the housing market. At Coakley & Theaker, we understand the importance of providing homeowners with up-to-date information and guidance to help them make informed decisions.
The latest data from Zoopla's House Price Index provides valuable insights into the current real estate market:
Demand in the housing market is nearly 19% higher than the same period last year, a notable surge despite the impact of higher mortgage rates on market activity during the past year.
An increase in the availability of homes for sale is expanding choices for both buyers and sellers. This improved alignment on pricing is supporting sales in the market.
Zoopla's House Price Index reports a slower pace of annual price declines at -1.1% in November 2023, compared to a steep decline of 7.2% a year ago.
Despite expectations of significant price falls, several factors have contributed to the resilience of property prices in the real estate market:
The robustness of the labour market, marked by high growth in average earnings, has played a crucial role in bolstering the market. This economic strength has allowed many households to withstand the impact of higher mortgage rates.
Stringent mortgage affordability testing introduced for new borrowers since 2015 has prevented households from taking on excessive debt, especially during a period of low mortgage rates. This measure has helped prevent a major housing overvaluation.
Zoopla data reveals interesting buyer behaviour:
While the average distance buyers look to move is 4.3 miles, a significant quarter of potential home movers plan to relocate to a different location from where they currently reside.
In the face of higher borrowing costs in 2024, buyers are expected to cast their nets wider in search of better value. This trend is especially pronounced in high-value markets across southern England, where upsizing can be cost-prohibitive. Nearly half of potential movers in these regions are willing to move 10 or more miles in pursuit of space and better value.
As you prepare to sell your house in 2024, here's what you can anticipate:
The momentum in new sales witnessed in late 2023 will continue into early 2024. Additionally, a seasonal rebound in demand is expected in Q1 2024 as pent-up demand returns to the market.
While mortgage rates are gradually decreasing, affordability remains a challenge for mortgage-dependent households making home-moving decisions. Higher mortgage rates still impact those yet to transition from cheaper fixed rates agreed before 2022.
The modest decline in house prices over the year means that UK housing remains somewhat overvalued by approximately 10-15%. This situation is expected to improve in 2024 as incomes rise and house prices trend 2% lower throughout the year. Sales volumes are anticipated to remain steady at around 1 million sales completions in 2024.
Despite affordability challenges, first-time buyers are projected to be the largest group of prospective buyers in the next two years. The rapid growth in rent continues to motivate this group, with average rents rising faster than average mortgage repayments over the past three years.
At Coakley & Theaker, we are committed to helping you navigate the dynamic real estate market of 2024. Our experienced team offers expert market analysis, personalized marketing strategies, professional staging and photography, and skilled negotiation to ensure a successful sale. We also provide guidance and support throughout the process, making your home-selling journey as smooth as possible.
Selling your house in 2024 presents opportunities and challenges, and Coakley & Theaker is here to guide you every step of the way. With our expertise and commitment to excellence, we can help you achieve your real estate goals in this evolving market. Contact us today to embark on your journey toward a successful home sale.
Richard Donnell, Executive Director at Zoopla spoke about this topic, saying: “The housing market has been more resilient than many expected over 2023 but it hasn’t been a surprise to us. Mortgage regulations introduced in 2015 have stopped an over-valuation of housing which is why the decline in house prices has been modest over the year. House price falls have been concentrated in the south and midlands while prices are still slightly higher over the year in Scotland and Northern Ireland. UK housing still looks expensive by historic standards which is why we expect UK house prices to fall a further 2% over 2024 as prices and incomes re-align. “
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.