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The rebalancing of the market to date in 2023 has seen buyer choice increasing and price growth moderating, according to Nicky Stevenson, MD of Fine & Country.
With the ratio of new sales to new instructions returning to pre-Covid levels, the demand/supply imbalance that fuelled price growth is correcting, the MD said.
“Sensible and realistic pricing is still paramount to achieving sales success,” Stevenson added.
The MD also highlighted a Rightmove report that activity levels for smaller properties – those with two bedrooms of less – were just 4% lower than in the last ‘normal’ market of 2019, while sales volumes for larger properties are lagging by 10%.
“With tighter budgets, buyers also appear to be more conscious of property condition,” she added.
“According to a Dataloft poll, ‘ready-to-move-in’ is the most sought-after feature for current buyers, ranking above the garden or homeworking space demands that typified the post-pandemic market,” Stevenson said.
Although mortgage approvals are significantly lower than previously, the 10% uptick in approvals between January and February marks the most significant increase at the start of a year since 2011, the MD observed.
“The middle of March saw average two-and five-year fixed-rate mortgage deals at six-month lows and although the Bank of England raised the base rate of interest to 4.25% on 23 March, there has been little change in the five-year swap rate, indicative of longer-term stability in the market,” Stevenson noted.
“According to Moneyfacts, product choice for first-time buyers, home movers and buy-to-let investors has risen recently, with rate competition between lenders intensifying, especially for those with lower loan-to-value (LTV) ratios and who are looking for longer-term fixed-rate options,” added.
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