There’s good news in the property market, and we like to think more to come as we progress into the summer. At present, homes that represent good value for money and that are priced realistically are in high demand. House prices are correcting after a spike in prices following the pandemic, and homeowners are still profiting from selling their homes following the gains made over the last few years.
Demand for property is currently at the highest level for six months and over 15% higher than the year before the pandemic. Demand is highest in Scotland as this is the most affordable area of the UK.
Market experts believe that mortgage rates will remain at around 4% for the rest of this year (Zoopla) and could even fall towards the end of the year.
House prices have fallen 1% from what they were in October last year, and the housing market is faring better than many people thought, as sales are picking up with the usual spring upturn. There are currently 65% more homes available for sale than at the same time in 2022.
This gives buyers much more choice, and there is expected to be around a million homes sold this year.
Since the pandemic, many people have been working at home full or part-time on a hybrid model, giving many people the freedom to look outside city centres and main transport links, helping them get more for their money.
And that freedom is still opening up the buying landscape for many, allowing them to look further afield for a home that’s better value for money. In addition, climbing rents have pushed people towards home ownership and prompted parents and grandparents to help their family members get onto the property ladder.
In addition, with the rise in living costs, some homeowners are downsizing to more affordable properties.
How long are homes taking to sell?
The average property in the UK is taking 15 days longer to sell than last year when homes were in high demand. However, they are still selling faster than in 2019. In Scotland, homes are selling fastest across the UK, selling in just 28 days. London has the longest time at 44 days.
Are homes being discounted?
Many sellers are modestly discounting the asking price of their home in line with what estate agents believe buyers are willing to pay. According to Zoopla, the average discount is £14,000 or 4%. They are making modest downward adjustments to their asking prices to ensure their pricing matches what buyers are prepared to pay. However, the average property went up by £42,000 over the pandemic, allowing people to drop their house prices following these gains comfortably.
Looking towards the rest of the year
The property market is correcting, and as a result, there have been falls in house prices. However, buyers and sellers are pushing ahead with their plans, and homes are still selling, with few signs that prices will drop. There are still above-average sales levels for some high-demand areas, and the message is to ensure your home is realistically priced.
Clyde Property is a leading independent, multiple award-winning estate agent with over 30 years of experience in selling and letting property in Scotland. Call your local Clyde Property branch today for friendly, impartial advice on letting and renting property.
