‘Is it a good time to sell?’ It’s the question every vendor asks after the value of their property. Will Lightfoot, Sowerbys’ sales director, reveals all!
While the latter is often key to a house move, the market’s wider performance is just as vital. The importance of working with an agent which offers an honest appraisal of value and demand has never been greater, and a number of sellers were caught out by an overly ambitious asking price last year.
The sellers’ market of the pandemic years swung wildly back to a buyer’s market in 2023, as affordability became a hindrance and housing stock levels rose.
But what for 2024?
The early signs are positive with the Nationwide house price index reporting that property prices rose by more than expected in January, the fourth successive monthly increase. Although relatively low at 0.7 per cent, the figure beat economists’ forecast of a 0.1 per cent rise and was the lowest year-on-year decline since January 2023.
While the Nationwide report noted the challenges for first-time buyers in raising a deposit, it said that the easing of interest rates by lenders had contributed to the rise in prices and, with the Bank of England holding the base rate again at the start of February, the housing market looks set to rally.
Separately, property portal Zoopla reported a strong seasonal uplift in buyer demand in the first three weeks of 2024, up 12 per cent year-on-year, suggesting that buyers and sellers are becoming more aligned on pricing, creating a more balanced market. The start of the year also saw a 22 per cent increase in new listings, reflecting growing confidence among sellers too.
“I think 2024 will be more stable with inflation and rates falling steadily by the middle of the year and strengthening towards the end.
The pointers are positive, but what about the Norfolk market? Sowerbys’ sales director Will Lightfoot says that, while the county has always been largely buffered from large market fluctuations, the national picture is very much in play.
“There was some readjustment in the market last year,” says Will, “but even in the last recession of 2008, Norfolk was not hit as hard as other areas of the country and it has always managed to withstand significant movements.
“In fact, year-on-year, the average house sale price with Sowerbys has only fallen by £10,000, so the sector is fairly robust. In the market more widely, we’ve seen overinflated house prices fall, but that’s undoubtedly because they were valued too highly in the first place. Being realistic at the outset is key to maximising your chances of achieving a positive and prompt outcome when selling your home.
Viewings and valuations are down slightly year-on-year, not by as much as you might think, but the real difference in the market is the number of applicants who are able to proceed. During the Covid years buyers were ready to go, but the biggest challenge in 2023 was the fluctuation in the market with interest rates changing almost daily.
“I think 2024 will be more stable with inflation and rates falling steadily by the middle of the year and strengthening towards the end. With affordability and more applicants in a position to proceed, vendors are also more confident to put their property on the market, knowing that they are likely to sell and find a property too.
“Even with the second homes market, which was flattened in 2023 as people waited out the market, we have already seen keen interest in January with offers on some of our more expensive properties within the first few days of this year.
“Last year, urban areas were some of the hardest hit on pricing as there was so much competition, but as younger buyers start to move the cycle on again, supply and demand will start to even out and we’ll see a more level playing field between buyers and sellers, with far more realistic prices achieved.
“The big surprise in recent years has been the growth in the new homes market with incredibly high levels of interest from applicants looking for energy efficient homes that have low maintenance costs and come chain-free, and this trend continues to grow.
“In some areas of the River Wensum and Broads, planning was halted by Natural England’s nutrient neutrality bill and, while this has now been relaxed, there is a dearth of new properties, so demand is particularly high in these areas.
“Typically popular with downsizers, we’re also seeing interest in new-builds from younger buyers and with some developers offering contributions to stamp duty, legal costs and even furnishing an apartment it’s an attractive option with a clean, easy transaction. In January, 30 per cent of our sales were new homes and this looks set to continue as affordability eases.
“Stability and balance are the key themes for 2024 and, after the boom years of the pandemic followed by the economic challenges of 2023, this is a welcome return to a more traditional, seasonal market which helps both sellers and buyers.”