2023 Year End Property Market Review
As we wind down the year and approach the festive season, it's time for a quick reflection on the events that transpired in November and a sneak peek into what might await us in the property market in the coming year. In this update, we'll delve into the key highlights of November and explore predictions for 2024.
November Recap: A Surprising Momentum
November, traditionally a period when the property market tends to ease into a quieter phase, surprised us this year. Instead of a significant slowdown, there was a remarkable resilience in the market. Despite a slight dip in activity, the numbers from Manning, Stainton, and other market indicators were impressive, especially considering the usual seasonal trends.
Buyer Surge: A Positive Sign
One standout statistic was the 41% increase in the number of buyers registered compared to the previous year, a time marked by significant economic challenges. Even when compared to 2019, the figure stood 15% higher, indicating a positive response to recent stabilisations in mortgage rates and favourable inflation figures. This surge in buyers set the stage for a robust month of new sales agreements.
Supply Dynamics: A Balancing Act
Rightmove's report highlighted that the available properties for purchase were only 1% lower than in 2019. Simultaneously, there was a consistent reduction in property listings as sellers adopted more realistic pricing strategies. This combination of increased demand and a more balanced supply-demand ratio contributed to a notable increase in new sales agreed during November.
House Prices: Navigating the Numbers
While various price indices presented conflicting data, the overarching narrative was one of a soft landing. The Land Registry, catching up with delayed reports, suggested a 0.5% price decrease, whereas Nationwide reported a 0.2% increase, and Halifax went a step further with a 1.1% rise. The market seemed to be finding a stable point in the cycle.
2024 Predictions: A Balanced Outlook
Looking ahead to 2024, predictions suggest an interesting and stable year for the property market. Despite initial doomsday forecasts of double-digit price drops, the market has shown resilience. Factors like controlled inflation, stabilising interest rates, and a relatively constrained supply side hint at a steady year. Predictions range from 0% growth to a modest 4-5%, still lagging behind inflation.
