The twists and turns of the property market…
Well, it’s been an eventful last couple of months in the property market, with political shakeups, interest rate hikes and global pressures leading to market commentators not really knowing where to turn! Thankfully, we are now starting to see a little more calm consideration returning and a market outlook that is looking better than many had suggested.
The waves created by the “mini-budget” from our shortest-serving Prime Minster and her ill-fated Chancellor have taken time to start to settle but some swift u-turning by slightly more experienced hands have seen the outlook and forecasts improve. The problems of high inflation cannot be solved overnight and the raising of interest rates was inevitable in trying to tackle this issue. It was feared that interest rates could reach as much as 6% next year, however forecasts now see interest rates likely to reach a high of 4% to 4.5%, a much more palatable outlook as far as the mortgage markets is concerned. There is even speculation amongst many mortgage brokers that some of the longer-term mortgage product rates will come down in the early part of 2023. Mortgage lenders will be reassessing their position, having initially raised rates to account for interest rates reaching the 6% mark.
We have also seen a softening of what effect these influences will have on property values. As the financial markets reacted negatively to Liz Truss’ plans, there was talk of property values declining by as much as 20%! Thankfully, some stabilisation has again seen these predictions improve. Many analysts, including Lloyds Bank, Rightmove and Knight Frank, are now suggesting a softening of between 5% and 8%. Given that house prices have risen by about 25% over the last 3 years, this still leaves property values in a pretty good place.
One thing that market commentators and analysts do agree on is that the level of transitions, the number of properties that will be sold, will edge back down to normal levels. This is compared to the frantic market we have all seen over the last couple years. However, fewer transactions in 2023 compared to 2021 or 2022 does not mean a poor market, bad times or a crash! It is just the market readjusting to calmer trading conditions.
The market we are moving in to will mean that anyone looking to sell a property will need better advice, more assistance and greater confidence in the estate agent they choose. An agent giving knowledgeable, professional advice, with experience of these different market conditions, will be able to guide home-owners along the path to getting the very best result. Here at Chapplins, we will be able to give you that advice, that support and the benefit of our experience.
We are also delighted to have been awarded the rating of “Exceptional” in the Best Estate Guide 2023, their highest award. This comes on the back of achieving this award in both 2022 and 2021 as well. This recognition of the high standards of our customer service is something we are fiercely proud of and sets us apart from other agents in our town.
If you would like to have a chat about the local property market, or book in a market appraisal for your property, please do just give us a call on 02392 482261 or e-mail us at havantsales@chapplins.co.uk.