House prices see biggest January rise since 2020

The beginning of 2024 has seen a flurry of activity in the real estate market, with home-hunters already gearing up for a year of potential moves. Estate agents are reporting a robust start to the new year, indicating a positive trend in the housing market. 

Increased Property Listings:

• The number of new properties coming onto the market for sale is higher than in the first week of January last year.
• Demand from potential homebuyers has also risen compared to the previous year.

Mortgage Inquiries on the Rise:

• Many individuals are inquiring about getting a Mortgage in Principle, with Rightmove experiencing high activity.
• January is anticipated to be the busiest month for Mortgage in Principle requests since the service was launched in 2022.

House Price Data:

New Year Bounce in Asking Prices:

• The average asking price of a home in Great Britain has seen the most significant New Year bounce since 2020.
• It has risen by £4,571 (+1.3%) this month, reaching almost £360,000.

Realistic Seller Expectations:

• Despite the rise in asking prices, they are still lower than this time last year.
• Sellers seem to be realistic about their price expectations as the market continues to recover from the impact of historically higher mortgage rates.

Predictions for 2024 Homebuyers:

Marginal Dip in Average Asking Prices Predicted:

• Prices typically rise from a quiet December into a busier January, and a 1% lower national average asking price is predicted by the end of the year.
• Good demand at the right price may prevent a more significant drop in prices in 2024.

Increased Property Listings:

• The number of homes coming to market for sale is 15% higher than at the start of the previous year.
• The North East and South West regions have seen the most significant increase in new listings.

Stable Mortgage Market:

• Mortgage rates have continued to edge down, providing a more stable backdrop for the mortgage market compared to the previous year.
• Lenders are offering competitive deals, indicating a positive trend in average rates.

Current Housing Market for Home Sellers:

More Sales Agreements:

• The number of sales being agreed is 20% higher compared to the same period in the previous year.
• Sellers are pricing attractively, leading to increased sales agreements.

Increased Buyer Demand:

• The number of potential buyers contacting estate agents in the first week of 2024 is 5% higher than in the same period last year.
• Growth in buyer activity is strongest in London and the North East.

Competitive Pricing Key for Sellers:

• Despite increased buyer activity, pricing competitively is crucial for sellers, as the number of homes coming to market is outpacing the rise in buyer inquiries.
• Elevated mortgage rates and the cost-of-living squeeze emphasize the importance of accurate and realistic pricing.

The  market is showing signs of vitality at the beginning of 2024, with increased buyer activity, higher sales agreements, and a positive trend in mortgage rates. Sellers are encouraged to price competitively for a successful move in the current market conditions.

Sourced from Rightmove