Record-Breaking House Sales
The week ending May 26th broke records for gross house sales, marking the best fortnight since May 2022. This surge in activity shows that buyers are active, making it a great time to list your home.
Key Statistics
* House Prices: In May, house prices for the 97,000 homes with sale agreements averaged £348 per square foot. This is up from £344/sq.ft in April, £339/sq.ft in both March and February, and £331/sq.ft in January. This steady increase indicates improving offers.
* Total Gross Sales Year-to-Date (YTD): Sales are 10.2% higher than 2023 YTD levels and 7.8% higher than the averages from 2017-2019. This reflects increased buyer sentiment compared to recent years.
* Price Reductions: Last week, 20,663 properties saw price reductions, compared to the 8-year Week 18 average of 14,286. This means 1 in 7.17 properties are being reduced monthly, higher than the long-term average of 1 in 9.9. This highlights the importance of pricing and marketing your home correctly from the start, something I can assist with.
Economic Indicators
* Inflation and GDP: Inflation fell to 3.2% in March, and positive GDP figures for Q1 2024 suggest the UK is moving out of a recession. However, the timing of the first base rate cut by the Bank of England remains uncertain, with predictions pointing to one of the next two MPC meetings.
* Mortgage Approvals: Mortgage approvals reached their highest level in 18 months in March, according to the Bank of England. This boost in buyer activity has helped stabilize the market, with transaction levels nearing pre-pandemic averages. Although mortgage rates have risen slightly from early 2024 lows, they remain below mid-2023 peaks, maintaining buyer confidence.
As always, staying informed is key to navigating the real estate market. Whether you are considering buying or selling, understanding these trends and staying informed will help you make the best decisions. Stay tuned for more updates, and feel free to reach out to me on my Instagram: @brettgraham_realestate for expert advice and assistance with your property needs.