Whereas it is regular for home costs to rise in January following a quiet December, this value improve is the biggest for January since 2020 and is greater than double the 20-year common of +0.6 p.c.
Nevertheless, Rightmove stories that common new vendor asking costs are nonetheless 0.7 p.c decrease in comparison with final 12 months, reflecting what number of new sellers are pricing extra realistically because the property market recovers from current mortgage charge spikes.
To date, it seems new sellers are extra assured going into 2024 with the variety of houses coming to market rising in addition to this month’s robust value improve.
Purchaser exercise has additionally jumped in comparison with the identical interval a 12 months in the past with the variety of potential patrons contacting property brokers about houses on the market within the first week of 2024 5 p.c larger in comparison with final 12 months.
Tim Bannister Rightmove’s director of property science mentioned: “After a stop-start market in 2023, the preliminary indicators counsel a smoother 12 months for movers in 2024.
“Extra new sellers at the moment are getting into the market, and with extra assured pricing. Whereas the elevated degree of purchaser exercise that we’re additionally seeing might justify a few of this elevated pricing confidence from sellers, it’s vital that sellers who’re eager to discover a purchaser don’t get carried away with New Yr enthusiasm when setting their value expectations.
“Elevated mortgage charges and the broader cost-of-living squeeze are nonetheless limiting patrons’ spending energy. Correct and reasonable pricing for his or her native space is the recipe for fulfillment for sellers trying to get transferring in 2024, and it’s been confirmed that over-optimistic pricing makes a transfer a lot much less probably.”
The variety of houses coming to market is 15 p.c larger firstly of 2024 in contrast with 2023 with document numbers of sellers launching on Rightmove on Boxing Day.
The variety of gross sales being agreed can be 20 p.c larger in comparison with the identical interval final 12 months because of sellers pricing extra competitively to draw patrons.
What about mortgage charges?
The common five-year fastened mortgage charge now sits at 4.86 p.c, in comparison with the height of 6.11 p.c in July final 12 months.
Whereas nonetheless excessive, the general image is extra secure with some best-buy charges edging nearer to 4 p.c and the primary Base Charge minimize since 2020 anticipated later this 12 months.
Tim added: “Rightmove’s whole-of-market information places us able to see the very earliest indicators of exercise out there, and the variety of new listings, purchaser enquiries to brokers, and gross sales being agreed are encouraging early indicators.
“Mixed with our newer Mortgage in Precept information, the numbers counsel that many are taking motion to make their transfer in 2024, maybe together with some who paused final 12 months as a result of extra unsteady mortgage market.”
Chris Rowson, managing director at Sharman Quinney in Cambridgeshire mentioned: “It’s definitely chilly on the market presently of 12 months, however the housing market is simply heating up. We’ve had a extremely promising begin to the 12 months, with some very constructive indicators.
“Future sellers are getting their valuation appointments booked in, future patrons are enquiring and getting their viewings booked in and we’re additionally seeing actually excessive demand for mortgage appointments, as movers search to know their affordability and place firstly of the 12 months.
“Most significantly, we’re seeing presents being made, and a excessive quantity at that. It’s early days and never a time to get carried away, however we’ve had begin.”
Paul Bayliss, director at The Sq. Room Property Brokers on The Fylde Coast mentioned: “It’s been a busy January up to now, which has truly adopted a busy finish to 2023 for us, much more so than over the summer season which is uncommon.
“The important thing factor is mortgage charges, and with charges coming down from July and into the beginning of 2024, we are able to see patrons have gotten extra confidence.
“We’ve seen plenty of exercise from first-time patrons, now able to make their transfer firstly of the 12 months, and with mortgage charges extra settled, we’re additionally beginning to see upsizers return who at the moment are extra assured to take out a bigger mortgage for an even bigger house. The market is simply getting began, however we’re optimistic about what 2024 can convey.”