Housing Market Update
07 Nov 2022
As widely expected, last Thursday the Bank of England confirmed that the base rate has been increased a further 0.75% to 3%. So what does this mean for the housing market and for those wishing to move with a mortgage? And what has been happening in the housing market since the Government’s disastrous September ‘mini budget’?
If a home owner is on a tracker rate mortgage they can now expect the rate to rise by 0.75% most likely from the beginning of December. This is not the same as a bank’s standard variable rate (SVR) where some lenders had already factored in this increase into their latest mortgage products and those lenders who have put their SVRs up following the announcement have done so at much less than the base rate increase e.g. Santander and Alliance & Leicester have increased their SVRs by just 0.01%. We’re encouraged by this and hopefully will see similar moves from other lenders but remember we’re estate agents not financial advisers and should you need help with the current mortgage market our recommended mortgage brokers Apex Mortgage & Protection UK Ltd can guide you to the best products. As a whole of market brokers they are not tied in to particular lenders and can therefore find you the best mortgage to suit your individual circumstances. Give us a call for their details.
IF YOU’RE HOPING TO SELL OR BUY A PROPERTY
Throughout October we have seen a return towards more ‘normal’ levels of market activity following two quite exceptional years for the local property market. So what is the new ‘normal’ for sellers and buyers?
There’s still a strong desire to come to market
New listings in October 2022 were up 13% versus October 2021, although down slightly (-1%) on the more comparable October 2019.
Demand is now in line with the last ‘normal ‘market and still outweighs supply
Buyer demand is 20% lower than the incredibly busy October 2021 but is 4% higher than October 2019. Also although buyers have greater choice than they did last year, the number of available properties for sale is still 30% lower than in October 2019.
Pricing realistically is more important than ever
Whilst the average asking price for October 2022 is 7% higher than October 2021, we’re starting to see the gap between asking price and final sold price widen. It’s therefore important to be realistic with your marketing price to achieve a sale as close to asking price, bearing in mind the possible revision in some buyer’s affordability.
AND WHAT ABOUT LETTINGS?
Demand for properties to rent remains higher than ever before with steady increases on the monthly rental amounts being achieved and prospective tenants often offering more than the advertised price just to secure the property.
We want to assure all our clients – those who are selling, letting or buying a property, either now or in the future – that despite the current uncertainty we’re still here working hard in the background whether that be to sell your property or find you your forever home. As a business built on service if you have any property related queries that we can help with just give us a call and we’ll happily assist. For those of you not on the market just yet, if an up-to-date valuation on your property would be of interest give our friendly teams a call to book a market appraisal. We can also give you a valuation for sale and to let at the same time if that’s useful to you.
Harrogate – 01423 503500
Lettings 01423 505458
Ripon 01765 698100
Wetherby 01937 580850
Property pictured: 43 St Andrew's Walk, Newton Kyme - Sale just agreed after only 1 month of marketing