It's 2024 and how is the market performing?
We are three weeks into the New Year and we are increasingly being asked "How has the market started"?
THE SALES MARKET
Although it is still early days in 2024, we can confidently say that the market is busier than we expected, which is fantastic news if you are looking to sell your home. With the constant interest rate rises last year, 2023 proved an extremely difficult market with prices falling by approximately 8 - 10%. The good news is that January has started how a typical January should, with confidence slowly but surely seeping back into the market. There are more homes being listed and new buyers beginning their search, culminating in an extremely busy start to the New Year.
January is usually the busiest month of the year with February and March following closely behind. If you are thinking of selling, now is a great time to list your home. With buyers thinking, "New Year, new start" and wanting to be in for Spring, now is the time to secure a sale.
THE RENTAL MARKET
Demand for rental property remains very high. Last year saw rental prices increase substantially, which was largely due to lack of supply. We are now seeing more property coming to the letting market which seems to have stabilised prices, but there are still numerous applicants registering. It looks like the rental market is in for a busy 2024.
As always, the landscape of the lettings market is forever changing, with new regulations, legislation and cost implications for the landlord. It is therefore imperative to use services of an experienced letting agent and this is where Gibson Honey excel. As experts in the area for more than 30 years, we would be delighted to advise on all aspects of the letting process.
Navigating the Mortgage Market in 2024: A Promising Start with Sub-4% Rates - Written by James Gibson our in house mortgage and protection adviser
The burning question on everyone's mind is, when will mortgage rates see a reduction?
While it remains an elusive answer, the dawn of 2024 has brought promising news, with select lenders unveiling 5-year fixed rate products below 4%. The anticipation is high, and the market is abuzz with the hope that this trend will cascade into the coveted 3% range.
Many seek the flexibility to reassess their interest rates in the short run by proceeding with 2- or 3-year fixed rate products. Yet, the strategic move by certain lenders to introduce sub-4% rates for longer durations is setting the stage for a potential industry-wide shift.
The beginning of the year traditionally sees increased activity in the property market as individuals contemplate moves aligned with their New Year plans. Several factors make this an opportune time to consider a property purchase:
• Interest Rates are on a Downward Trend: Maybe interest rates are not at the ultra-low 1-2% rates of years past, but there's a noticeable reduction in mortgage interest rates.
• Lenders and Competitive Deals: Recognizing that lenders are essentially businesses with annual targets, the start of the year often witnesses the introduction of competitive deals. It's a great time to potentially nab a competitive rate.
As your trusted adviser, my commitment extends beyond the initial mortgage application. With your consent, I stand ready to facilitate a switch to a better rate within the same lender, potentially saving you substantial sums—sometimes in the thousands.
The impending Monetary Policy Committee meeting with the Bank of England on the 1st February adds an intriguing layer to the unfolding narrative. Will there be a vote to reduce the base rate? The answer, I anticipate, will be revealed soon, further shaping the trajectory of mortgage rates in 2024.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
If you are looking for a personal service from a local multi-award winning agent, then call us on:-
Ruislip Sales - 01895 677766
Ruislip Manor Sales - 01895 699077
Lettings - 01895 625999
James Gibson - Mortgage and Protection Adviser - 07971 629 217
Email - info@gibsonhoney.co.uk
We hope that you have had a good start to the New Year and we look forward to speaking to you soon.