June was a bumper month for house sales going through to exchange of contracts, which is good news because during every month in 2023 when we start to write a quick blog about the house market, we expect to be reporting a house market in trouble because of the relentless UK media reporting of house prices falling and interest rates rising. The facts and experience from the shop floor is of a house market showing remarkable resilience half way through 2023.
House Prices?
It is clear from the volume of house sales going through to exchange of contracts that we have buyers and the market is in better shape than you would perhaps think.
Yes house prices have levelled off and in some sectors there has been a small reduction in values, however this is minimal and the buyer demand remains very good. House sellers are now more realistic on price if they are serious about moving home, so we have a more balanced market with buyers and sellers more aligned on pricing, which in some part has impacted on the fact that house sales productivity at McCarthy Holden are performing better than last year.
The Wider Picture
When the Nationwide recently reported the annual rate of house price growth as -3.5% to end of June, the lead their report with the heading ‘House prices relatively stable in June’
We need to remember that these sums represent the UK wide position, so in our area of operation in the Hampshire / Surrey / Berkshire borders house prices have held up well with some sectors only slightly lower compared to a year ago.
This resilience in the market is no doubt underpinned by the labour market conditions, which remain solid and also household balance sheets appear in relatively good shape because we get few if any house sales occurring because of financial stress.
The residential letting market is in very good shape with plenty of tenant demand, especially around the £4,000 p.c.m. price point where properties are being snapped up by eager tenants. If you need market insight at any time in 2023, just go to our web site and ask your nearest branch for a free no obligation house price appraisal.
