Strong market activity in 2024 so far despite “buyers market”

In a recent study conducted by Zoopla, a substantial seasonal surge in mortgage activity has been identified, driven by pent-up demand and a drop in interest rates below the 5% threshold.

Notably, there has been a remarkable uptick of 12% in UK buyer demand, complemented by a concurrent 13% year-on-year increase in agreed-upon sales. This surge in sales agreements surpasses the figures observed a year ago across all regions and counties.

London has emerged as the vanguard in the revivalof new buyer demand, boasting an impressive increase of 21%. This resurgence is particularly noteworthy as London had experienced seven years of comparatively lackluster activity in contrast to other regions within the UK.

Richard Donnell, the Executive Director at Zoopla, expressed optimism, stating, "It's a positive start to the year with all key measures of housing activity higher than a year ago." The reduction in mortgage rates is identified as the catalyst for a rebound in buyer demand and sales, rectifying a relatively lackluster second half of 2023 when potential movers deferred their decisions.

Despite this positive momentum, Zoopla maintains a cautious outlook for the year, characterizing 2024 as a buyer's market. The overall supply of homes on the market has surged by 22% compared to the previous year, providing a widened array of options for potential buyers. The average estate agent is currently managing a portfolio of 28 homes for sale, further enhancing the choices available to prospective buyers.

However, Zoopla notes that over one in five sellers are still necessitating a concession of more than 10% from the asking price to secure a transaction. In London and the South-East, this proportion rises to nearly one in four sellers. This trend underscores that, while transactions are being executed, home buyers remain discerning in their financial considerations, emphasizing the importance of value for money.

Sellers are advised to adhere to realistic pricing strategies if you're serious about making that move in 2024. The market conditions are be improving, but buyers are still conscious of price, and getting valve for money. So, let's maintain a positive atmosphere, approach negotiations with wisdom, and work towards making 2024 an outstanding year in UK property!!

Sourced from propertywire