MARKET OVERVIEW – January 2023
Alexander Hudson Estates keep a close eye on the market at both a local, regional, and national level. As we enter the second quarter of 2023, the beginning of the Spring season sees stability and confidence continuing to return to the market as it recovers from the turbulence at the end of 2022.
‘The pace of the market reached an unsustainable level in the last two years and was on track to slow to a more normal level, though the speed of this slowdown to more normality was accelerated by the reaction to September’s mini-Budget.
While higher mortgage rates and economic headwinds raise challenges, many potential home movers who were effectively side-lined in the frenetic bidding wars of the last two years will find that a slower-paced market gives them time to plan and secure their next move as we enter the traditionally busy spring-buying season.’ (Source: Rightmove)
Typical first-time buyer type properties (two-bedrooms and fewer) lead the recovery as we enter Spring market: Average newly marketed prices for this type of home are now just £500 lower than their record last year.
Larger home sales are lagging as sales agreed in the last two weeks in the top-of-the-ladder sector are 10% behind the same period in 2019.
Average mortgage rates have fallen back from their peak last year, with average rates for a 15% deposit five-year fixed mortgage now 4.65%, edging down from last month’s 4.75%, and October’s 5.89%, though this compares to 2.48% in March 2022.