A Balanced Property Market - Market Update August 2024
Mark Manning, our Managing Director, assesses the UK property market a month on from the general election result. Has there been increased activity and what are the potential implications of falling rates from a long-term point of view? Have the predictions he made in last month's market update come true? Watch the video to find out!
Introduction to our market update
We're now a month on from Labour's Landslide victory in the general election and the market is already showing signs of the surge we predicted in last month's update.
Did we get the Starmer Surge?
Last month, we spoke of the similarities in the election result to one back when Boris won in 2017. What followed was a huge surge in market activity, which eventually became known as the Boris Bounce. Well, given the similarities in both the market and the decisiveness of the election result, we suggested a Starmer Surge might be on the way.
It's too early to tell, but there are a few indications to suggest we may well be correct. Looking at our own data for example, we've sold 42% more properties in July 2024 compared to the same month last year. This does point to a flurry of market activity, but it remains to be seen whether this continues throughout the coming months.
The market remains price-sensitive
Interestingly, property prices, despite still tracking upwards, are still showing real signs of sensitivity. Sellers daring to test the market and setting their prices too high are finding out this isn't a booming market, and instead requires careful considerations relating to people's affordability at the moment.
Impact of falling rates
Interest rates are finally starting to fall, and although I expect this to have been priced into the mortgage market short-term, this could drive price growth long-term if rates continue to fall.
Conclusion
So overall from what we can see the confidence in the property market is there, supply of homes in the market remains relatively constrained and demand is still good. This is a market in balance and so one which requires you to work with a really good reputable agent, who can get you a sale and, critically, drive it through to that all-important key handover.
Keep an eye out for our next market update video for the latest property insights!
