2024 so far has certainly seen the housing market improve from the uncertainty of the previous year caused by the increase in the cost of living and hike in interest rates. However, many people expected house prices to drop this year which we haven't seen (albeit they have levelled off), but with mortgage rates having slightly increased month on month, this has slowed the market down somewhat from what seemed to be an initial recovery. If rates happen to fall in the second half of the year, we'll certainly see the market continuing to recover.
According to Rightmove, house prices, sales, and demand seem to be maintaining momentum and despite the upcoming general election, the majority of buyers and sellers have continued with their moving plans.
Average house prices in the East Midlands have seen a slight increase of 0.7% in May which is 1.3% up from May 2023.
Many buyers are keeping a close eye to see whether there will be a reduction in the Bank of England interest rates as mortgage rates remain relatively high with the average 5-year fixed mortgage rate being at 5.04%, compared to 4.94% at the beginning of this year.
Here at O’Flynn Estate Agents, last month saw our applicant registration increase compared to April, however viewing levels dipped which is typical when there is a school half term. Valuation levels and new instructions were also down on April but sales remained steady.
Owner and Director, Karl O’Flynn said “Last month's statistics are typical of what we are seeing here in Glenfield and the surrounding villages. Pricing is still key as to whether a property will get regular viewings and it’s still important for anyone looking to sell that they are realistic when it comes to value. Ensure that an estate agent can justify their value with comparable evidence as I’ve seen some new properties coming to the market recently with questionable asking prices. As tempting as it is when presented with the highest value, ensure that the estate agent can justify these figures with comprehensive evidence of similar sold properties.”
On interest rates he added, “Personally, I thought that we would have seen a slight drop in interest rates and this would have seen the housing market really continue that positive momentum that we experienced in the first third of the year. With house prices remaining stable and a slight increase in mortgage rates, there are many buyers still holding off purchasing a property whether it’s affordability or they are expecting rates to drop before committing to their first mortgage or a new mortgage.”
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