New Year Housing Market Update

by Handy Mag
Published: Last Updated on

by Robin Kellock, Independent Mortgage Adviser

As we head in to another year, it is always a time for reflection and looking forward.

On reflection, 2023 started with higher interest rates and more negative factors facing the housing market than for many years, but ended with interest rates being cut by major lenders, and the housing market showing much resilience to all that the year had thrown at us.

We have had the cost of living crisis, continued conflict between Russia & Ukraine, and a new crisis in the Middle East since October. Such factors will always affect the global and UK economy, which ultimately feeds back in to the mortgage world and housing market.

The housing market has certainly dramatically slowed in the last few months, but as I have reported previously, it couldn’t keep going as it was, with prices continually rising. Interest rates were falsely low after Covid times, and they had to re-adjust as well.

So, I feel that 2024 will be back to almost a ‘normal’ sort of market, with interest rates between 4.5% and 5%, and prices stabilising, and even dropping a touch, in some areas.

There are many positives with a ‘normal’ market, when there are not multiple offers on every house that hits the market, and monthly price rises causing many to miss out. Incomes have increased in line with inflation which means that many first time buyers could have a better chance of getting on to the ladder now, than in more buoyant times. Homemovers will also have a better chance of moving upmarket to a bigger and more expensive house as availability increases and vendors are much keener to negotiate on the price.

Dont be too influenced by the negatives portrayed in the National media, there is much to be optimistic about in the housing market in our lovely part of the world. And if you need mortgage advice in 2024, don’t hesitate to give me a call on 07866 254277.

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