Market Report July 2023
Introducing our latest market report, providing you with valuable insights
In the property market changes throughout the year often mirror the seasons and the weather. This means that, to some extent we can predict what's going to happen at various times and also measure those changes against previous years. This gives us a good understanding of what's actually going on.
Online property portal Rightmove has the most up-to-date information covering the whole market across the UK, which it also breaks down into each different area. It's much more current than some of the research data you'll read about in the news taken from other sources, so it also gives a more accurate picture at any given time in the year.
Summer slowdown
We all know that sunny days and hot weather tend to slow things down. People are busy with holiday plans and the summer school break, so it's no surprise that the property market usually looks a lot less frantic at this time of year.
However, Rightmove's latest report shows that average new seller asking prices fell last month and that's the first time a drop has been seen in June since 2017. Even so, that average figure equals £82 per house, which doesn't even measure as a -0.0% point!
In fact, across Wales, the figures show that asking prices actually went UP by 1.8%, although that's not something you are likely to see splashed across the media!
Because the 'average' property price includes the over-inflated London and south east England regions, it means that when properties there start to take a tumble it makes things look bad everywhere else.
Of course, this isn't actually the case. The usual seasonal pattern for the rest of the year means we expect to see some more modest falls in asking prices, so right now there really doesn't seem to be anything to worry about.
Sellers might actually be more interested in the fact that Rightmove's data also goes on to reveal that demand from buyers over the last two weeks of June was 6% higher than the same period in 2019, which represents more normal pre-pandemic market conditions.
Rates and mortgages
Possibly the biggest concern for anyone looking to move home right now is the seemingly ever-increasing interest rates being set by the Bank of England. Rightmove's own 'Mortgage in Principle' service saw daily visits rise by 53% since the last announcement of unexpectedly high inflation figures.
What this shows is that people are simply more concerned about managing their money and financial obligations when it comes to buying a property. It doesn't mean that the market is about to stall anytime soon.
Of course, significant increases in fixed mortgage interest rates over the last few weeks, together with constantly high inflation figures, does means there is greater pressure on those looking to buy.
However, as 'fall through' rates remain fairly static and the latest figures actually show greater demand in terms of buyers, the great majority of those looking to move home seem determined to carry on with their plans.
Common sense
As with most things in life, looking at the current property market using a little common sense makes things a lot clearer.
The truth is that whatever the greater economic picture may be, people will always want (or need) to move home and that means the selling and buying of property.
At times where things are a little tighter than at others, whether that's due to financial pressures or the time of year, sellers need to price competitively and buyers need to be realistic about their budgets.
In many ways North Wales reflects what's going on in other parts of the UK, for instance the average time it takes 'on the market' for a property to agree a sale is currently about the same as in London (65 days).
The thing to bear in mind is that the differences across the regions mean that only a knowledgeable local estate agent can give you the real information you need about buying or selling in your area.
So if you'd like to know more about the property market covering Denbighshire and Conwy through to Flintshire and everywhere in between, get in touch with us and we'll tell you all you need to know - at any time of year!