Residential market trends
What are the current trends in the residential market?
How buoyant is the residential market at present?
What are your expectations for the residential market in 2023?
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12 responses from the Newspage communityCopy all
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We are seeing the higher end of the market still moving well. those clients who are fortunate enough to borrow at low loan to values (LTV), or have no mortgage at all, are finding they have lots of stock to choose from and can negotiate reasonable prices.
The first-time buyer market is still struggling as the best mortgage rates require the biggest deposits.
The remortgage market seems to be rearing its head once more as clients who would have opted for a product transfer 2 months ago are now being tempted by challenger banks and their low rates with high cash back.
The first-time buyer market is still struggling as the best mortgage rates require the biggest deposits.
The remortgage market seems to be rearing its head once more as clients who would have opted for a product transfer 2 months ago are now being tempted by challenger banks and their low rates with high cash back.
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The property market is generally pretty slow and I think lots of people who work in the housing and mortgage sector will be glad to see the end of 2023. The Office for Budget Responsibility is predicting that housing transactions will fall 6.9 per cent in 2024, which is pretty worrying but also without a crystal ball extremely hard to predict. It is clear that lots of areas of the UK economy are grinding to a halt and action needs to be taken to bring it back to life.
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The 2023 mortgage market is a tough place to be but it seems that mortgage customers are equally as tough, the majority of the business we have seen has been spread across First-time Buyers / Product transfers and remortgage cases. First-time buyers have been surprisingly resilient, Nationwide has been a go-to lender for us at CMS as they have been supporting higher lending via the Helping Hand product. Without the product transfer business we have had this year I have no doubt that some smaller firms would have disappeared, the Remortgage market has begun to increase as we speed to the end of the year and the disparity between what the existing lender is offering and what is being given elsewhere is beginning to grow larger and therefore a more attractive proposition for the client. I do feel that the first-time buyer market will continue to grow in 2024 but if we can get to the low 4% rates this will increase the market for sales and home movers and add to the positive outlook.
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The residential is prime right now for first time buyers who need a home with many properties hitting the markets and boxing day being typically rightmoves busiest day speak to a broker get pre approved for a mortgage and get househunting over the next 8 weeks as there are bargains to be had before all the buy to let investors start again after submitting their tax returns.
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Positive news always leads to an increase in activity and recently it has only been good news coming out of the market, with the base rate pauses and rates starting to fall. There certainly has been an uptick in mortgage activity over the last month or two as potential buyers return to the market. Buyers are starting to acclimatise to the new normal in mortgage rates and for some, it is still cheaper than renting. The market is still subdued compared to recent years and rates will have to fall below 4% before we see a true return to recent years activity.
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Seeing loads of first time buyers starting to look in Leeds. We have done double the amount of mortgages this November as last November and it's looking like the year could be ending with a bang as opposed to a whimper residentially
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As a broker based in Leicester, we engage with our clients navigating the property market for their dream purchase. The prevailing dynamics in various sectors of Leicester's property landscape reveal a marked buoyancy. Feedback garnered from our clients regarding these interactions suggests a significant demand, with more than 10 to 15 prospective buyers expressing substantial interest in each property viewed. This heightened demand has precipitated a competitive pricing environment, particularly in certain pockets of Leicester.
This competitive scenario is exemplified by a client's journey, spanning over six months, to secure their ideal home. The extended duration was attributed to the intense competition, resulting in a pricing war, finally culminating in the acceptance of their offer. Evidently, buyers are acquiescing to the existing interest rate norms and actively advancing towards their home buying goals.
This competitive scenario is exemplified by a client's journey, spanning over six months, to secure their ideal home. The extended duration was attributed to the intense competition, resulting in a pricing war, finally culminating in the acceptance of their offer. Evidently, buyers are acquiescing to the existing interest rate norms and actively advancing towards their home buying goals.
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We have pent up demand, enquiries have definitely increased in the last month or so, the interest rates reducing is having the desired affect, however, it is a slow time of the year in whatever market.
We are optimistic we should have a good start to 2024, with current level of enquiries, we still need estate agents to manage their vendors expectations with regards to price, and more importantly we still need lenders to cut their margins on rates if they want to see growth in 2024.
We are optimistic we should have a good start to 2024, with current level of enquiries, we still need estate agents to manage their vendors expectations with regards to price, and more importantly we still need lenders to cut their margins on rates if they want to see growth in 2024.
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House prices have held up in the residential market better than expected which is a positive. Unfortunately, transaction volume is very low, as high mortgage rates kick into people's affordability. I expect this to continue going into 2024 which will be a very similar environment.
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No doubt Boxing Day will be the busiest day of the year on Rightmove again. I’ve got a draw full of first time buyers out there looking for properties. And it’s getting bigger. Some come back after looking for a week with an offer accepted. Some have been out there for a year or more. It depends how flexible people’s criteria is.
There’s no free money being handed out at the moment which may have taken the edge of things compared to a couple of years ago but there are people commencing the property search every day, and more than the number of new houses that have, or well ever be built in the country ever again.
There’s no free money being handed out at the moment which may have taken the edge of things compared to a couple of years ago but there are people commencing the property search every day, and more than the number of new houses that have, or well ever be built in the country ever again.
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I've been saying this for the last 6 months now but it's just pretty steady - something we'd all take within the industry after the rollercoaster of the last year. Purchases are still being tied together quite late before the industry shuts up shop in a fortnight for Christmas. That is really encouraging and points towards that traditional busy month of January being a big one.
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Cautious optimism is the consensus from the colleagues I've spoken to. Nationwide, the market's adapting to new mortgage norms, with first-time buyers showing resilience despite challenges. There's hope for 2024, as activity picks up and the market steadies.