The average price for the latest properties entering the market increases by 0.2% (+£890) this month, lower than the 1.2% average for this time of year, as new sellers heed their brokers’ advice to price prudently in order to attract Spring purchasers.
Rates started declining in Wales at the very end of 2022, as higher mortgage rates impacted the desire of buying a new property. Purchases have additionally dropped below the 2017-2019 norm. We anticipate that this will keep going through 2023, with Wales outperforming many other parts of the UK before returning to its former glory in 2024.
Regardless of the economic challenges, the price of homes for first-time buyers this month reached a new high of £224,963 across the UK.
- Even with record-high rents, first-time buyers who can overcome the mortgage and deposit obstacles still find buying to be enticing.
- The average first-time homebuyer mortgage rate for a five-year fixed, 15% deposit loan had dropped to 4.46%, with the lowest available rate for this mortgage type now at 4,19%.
In the current month, Nuttall Parker noticed, new seller price requests jumped by only 0.2% (+£890) to £366,247, far less than the 1.2% usual increase at this time of year. This unusual pricing restriction indicates that numerous prospective sellers are aware of the economic difficulties and the housing sector’s shift to a slower rate and more regular activity pattern last seen in the pre-pandemic industry of 2019. While the journey has been a roller coaster to this point, with undoubtedly more ups and downs to come, the total amount of sales agreed has risen to on par with the previous period in 2019.
Our Agents note that plenty of sellers have branched out from the hectic multi-bid markets of the past few years and recognise the new necessity to entice Spring customers with a competitive selling price. The present unusually steady market circumstances may entice additional sellers to jump into the market who had been contemplating a move in recent years but have been turned around by its frenzied tempo. Buyers who failed to find a property that matched their criteria in the previous supply-constrained marketplace are going to have a greater selection now.
Wales offers a price benefit, with prices that are on average 32% lower than the UK rate. Wales’ average house price for April is at £257,653, taking around 62 days to sell. As a result, the effects of higher mortgage rates become less serious, and we predict Welsh price growth to beat the UK average during the course of the next five years, at 11.1%.
Transaction activities have slowed in the past few months, owing to lower demand for properties. However, operations have been stronger than anticipated, accounting for more than 90% of the before the pandemic on average. We anticipate further declines in activity as the complete effect of rate hikes is recognised in the market.