Housing Market Insights: A Closer Look at Trends and Growth
Hello there! Let's dive into some illuminating trends in the housing market that might just catch your interest. We'll explore the impact on people's lives as well as the numbers.
Promising shifts in property sales
Since March of this year, the number of property sales falling through has decreased by over 6%. What's remarkable is that this level is nearly on par with the figures from July 2019, before the pandemic hit. Additionally, the time it takes for property sales to go from agreement to exchange has been steadily decreasing since February, hitting 113 days in July, according to TwentyEA.
Impressions despite interest rate challenges
Amidst challenges posed by higher interest rates, a heartening picture emerges. Four out of England's 10 regions have achieved remarkable growth in exchanged property prices, showing an increase of at least 5% compared to 2022. Leading the pack is Northern Ireland, boasting the highest growth of exchanged prices at 8.4%. Other regions such as the South West, Inner London, East of England, the North West, and Scotland have all achieved growth rates exceeding 5%.
Instruction price insights
In terms of year-on-year growth in instruction prices, Northern Ireland takes the lead again with 7%. The North West follows closely with an increase of 5.7%, while Scotland and Yorkshire and the Humber both achieve 5.7% and 5.1% respectively.
Notable gains in property value
When assessing an average property, the growth in the past year translates to an impressive £13,000 increase, and an astounding £64,000 since 2019.
Rise in asking and exchanged prices
Looking at the bigger picture, asking prices at the time of original instruction have witnessed an average rise of 2.8% over the past year and a whopping 24% since 2019. The growth in exchanged prices, on the other hand, stands at an average of 3.8% in the last year and a remarkable 22% since 2019. The gap between initial asking and exchanged prices remains relatively steady between 2023 and 2019.
Positive outlook amidst headlines
Despite the somber headlines, Katy Billany, Executive Director of TwentyEA, offers a different perspective. She highlights that despite the pessimistic news we've been encountering, both instruction and exchanged prices have continued to climb across the UK. A particularly hopeful aspect is that four out of England's regions, along with Scotland and Northern Ireland, have observed growth in exchanged prices by 5% or more.
Analyze and stay hopeful
Taking a regional lens, Billany mentions that in the last year, only Scotland experienced an increase in the volume of sales falling through. Nationally, properties priced below £200,000 are now notably less likely to encounter sales falling through compared to the same period last year. The decreasing "time to exchange" is another positive sign, leaving room for optimism.
In conclusion
In the ever-shifting housing market, these trends offer intriguing insights. Despite the challenges, growth in various aspects continues to paint an encouraging picture. Keep your eye on these trends as they play a significant role in shaping the housing landscape, and remember that the numbers tell a story of resilience and transformation.
