Property market ‘correcting and rebalancing’ says agency MD

Nicky Stevenson

The rebalancing of the market to date in 2023 has seen buyer choice increasing and price growth moderating, according to Nicky Stevenson, MD of Fine & Country. 

With the ratio of new sales to new instructions returning to pre-Covid levels, the demand/supply imbalance that fuelled price growth is correcting, the MD said. 

“Sensible and realistic pricing is still paramount to achieving sales success,” Stevenson added.

The MD also highlighted a Rightmove report that activity levels for smaller properties – those with two bedrooms of less – were just 4% lower than in the last ‘normal’ market of 2019, while sales volumes for larger properties are lagging by 10%. 

“With tighter budgets, buyers also appear to be more conscious of property condition,” she added. 

“According to a Dataloft poll, ‘ready-to-move-in’ is the most sought-after feature for current buyers, ranking above the garden or homeworking space demands that typified the post-pandemic market,” Stevenson said.

Although mortgage approvals are significantly lower than previously, the 10% uptick in approvals between January and February marks the most significant increase at the start of a year since 2011, the MD observed. 

“The middle of March saw average two-and five-year fixed-rate mortgage deals at six-month lows and although the Bank of England raised the base rate of interest to 4.25% on 23 March, there has been little change in the five-year swap rate, indicative of longer-term stability in the market,” Stevenson noted. 

“According to Moneyfacts, product choice for first-time buyers, home movers and buy-to-let investors has risen recently, with rate competition between lenders intensifying, especially for those with lower loan-to-value (LTV) ratios and who are looking for longer-term fixed-rate options,” added.

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