Housing Market Summer Boost by Heather Hilder on May 16, 2023 “Housing Market” Set for Summer Boost There’s good news for everyone interested in the property market this month. The latest Bank of England figures show a dramatic rise in the number of approved mortgages as soon as Spring arrived. Could this mean the housing market is set for a summer boost? The number of loan approvals for house purchases rose 18% between February and March, from 44,100 to 52,000. The sector suffered a slowdown following last Autumn’s disastrous Truss/Kwarteng mini-budget. You’ll recall that promises of billions of pounds of unfunded tax cuts prompted chaos in the markets and huge rises in borrowing costs. The turmoil was short-lived, however. Stability has returned to the market – even if transaction numbers have not yet recovered completely. But the forecast for the Summer is looking good. Zoopla’s latest forecast predicts that price growth will be slower over 2023 but indicates that transaction numbers will continue to grow. Improve The number of new sales agreed is 6% up on 2019, according to their figures and in line with the five-year average. Zoopla also claims the market is set for 500,000 sales in the first six months of 2023. Zoopla claims it could reach 1.1m by the end of the year if sellers price realistically. Annual house price growth to March was 3% compared to 9.3% 12 months ago. Zoopla Executive Director, Richard Donnell, said: “Housing market conditions continue to improve as buyers return to the market and more sales are agreed.” This sentiment has been echoed by the recent Nationwide House Price Index which suggested that the effects of the mini-Budget may be fading into the memory. Nationwide reported that prices rose 0.7% between March and April after seven consecutive months of declines. Recovery Nationwide’s Chief Economist, Robert Gardner, said: “While confidence remains subdued by historic standards, people’s views of their own financial position over the next 12 months and general economic conditions in the year ahead, have both improved markedly in recent months. “If inflation falls sharply in the second half of the year as most analysts expect, this would likely bolster sentiment – especially if labour market conditions remain strong. “This, in turn, will be likely to support a modest recovery in housing market activity.” And Nathan Emerson, Chief Executive of estate agency trade body, PropertyMark said: “Agents are reporting transaction levels year on year to be stable as a stream of new properties enter the market with serious buyers still keen to move. “Sellers are still in a strong position to sell; however, they can no longer test the market at higher prices and align with those achieved last year. Instead, they will need to reduce or be open to offers for a more realistic and efficient sale.” In another boost for buyers and sellers alike, Agency comparison site, GetAgent, claims the time it takes to sell a home in England Wales has fallen by 44 days. GetAgent regularly monitors the time it takes to sell a home from the point of listing to the completion being registered. Dramatic reduction Latest figures show that it has taken, on average, 250 days to sell a home in the last 12 months. That’s 44 days faster than the 294 days it took a year ago. GetAgent Chief Executive, Colby Short, said: “Despite the property market instability spurred by last September’s mini-Budget, home sellers and buyers are continuing to transact and at a greater speed when compared to the 12 months prior. “In some areas there has been a dramatic reduction in the time it takes to sell a home, although this certainly has not been the case across the board. “For those in need of a quick sale the best plan of attack is to price realistically based on the current market conditions of your local area, ensure you have your paperwork in place so that you are ready to act when needed and consider opting for a first-time buyer or buyer without an ongoing chain – even if it does mean accepting a marginally lower price for your home.” Here at Callaways Estate Agents, we will do all we can to help you complete a smooth house sale. We operate across the South Coast, including in Falmer, Worthing and Brighton & Hove, and have the experience and knowhow of the local area to help you set the right price and attract the best kind of buyers. Find out what we can offer and if your area is set for a housing market summer boost, get in touch with us today.