March is almost here. So, it is time for us to bring you our Property Market Review for Spring 2023. Read on for our market update.
Last year ended somewhat tumultuously in the real estate market. Moving and mortgages often go together. So, when the mortgage market hit a period of turbulence after the ill-fated September 2022 mini-budget, it was time to buckle up and hold on tight.
Spring, however, is traditionally considered a time of new beginnings. Now, we’re not suggesting that there has been a 180-degree turnaround. But there is a whiff of optimism in the air, and market confidence is beginning to build again.
Interest rates have peaked and are beginning to fall. Mortgage industry experts expect rates to stabilise around 4% to 4.25%. And while these rates are slightly higher than those borrowers have become used to, there is an increased understanding that a base rate of 0.5% was unsustainable, and this is the new norm. At the same time, lenders have adjusted their affordability calculators to reflect the higher rates.
The U.K. currently has one of the lowest unemployment rates in modern times. It’s important to remember that job security is the critical driver in the property and mortgage world. As long as a potential purchaser has confidence in their ability to earn and sustain an income, the decision to move and borrow money is straightforward. The interest rate when making that move may affect the amount they borrow and their budget. However, it’s certainly not a barrier to moving home. Depending on their circumstances, people will always need to upsize, downsize, or relocate.
Another statistic that holds the media’s attention in times of uncertainty is the average house price and whether we will see it rise or fall. There is no doubt that there will be adjustments ahead, but these will vary widely in scale depending on the region. We are fortunate that West Sussex continues to offer a level of desirability to which many buyers aspire.
Finally, the truth is that a home will always be worth more to the right buyer, and that’s where thirty years of combined experience comes into play. At Penfolds, our ability to recognise a purchaser’s circumstances and buying signals, combined with our complex negotiation skills, means we can find your perfect match.
In summary, there are definite signs of positivity in a calmer, more measured market. We’ve already had a busy start to 2023 with new instructions and properties Under Offer. If you’re hoping to move this year and need help figuring out where to start, a conversation with us is a great place to begin. Contact us HERE.
