There isn’t a day that goes by when the topic of house prices and mortgage rates aren’t in the news, but what is actually happening right now?
Of course, anyone looking to sell or buy property will be keeping an eagle eye on property prices in the area, but Zoopla has just released its latest House Price Index which is reporting that while house prices have risen 1.2% over the past year, they have predicted that there will likely be a drop of up to 5% in prices in 2023.
Higher mortgage rates – which are edging towards 6% - and rising living costs have hit the market and slowed sales, but there are still plenty of opportunities for buyers and sellers looking to move this year.
Here at Clarendons we have seen many changes during our 13 years in business in the Surrey and Sussex area, and house prices are still above what they were pre-pandemic, so effectively we are almost seeing a correction in the market.
There are several things to consider when it comes to selling and buying this year.
Bag a bargain
If you are in the market to sell your property and buy another, then the cost is all relative. With prices dropping, you may be selling your home at a lower price than in 2021 or 2022, but you will also be able to get your next house for less too. Obviously, mortgage costs will play a factor, so be sure to consult with your financial advisor.
When you’re first thinking of putting your house on the market you will no doubt have a figure in your mind of what you would like – and need – to achieve. But given the current market, you must be realistic.
Listen to your estate agent’s advice and look at recent properties sold in your area. While it’s tempting to put it up at a higher price, this could be detrimental to the initial impact and interest it will generate.
It’s something we will advise clients, but in the current climate it’s even more crucial to listen to the experts. The key thing is not to let your property stagnate and just sit on the online portals.
Here at Clarendons we would suggest if there are no offers (or acceptable ones) coming in, to review the pricing every four weeks.
As new properties come on daily, you don’t want your home to become lost amongst the masses – so the longer it is on the market, the more momentum you need to create. Speak to your agent and ask their thoughts – it’s their job to maximise the marketing for you, so don’t be afraid to ask.
Get in touch with our team today to find out more.