If you’re thinking of selling your home, you’ve probably asked yourself the age-old question: Is now a good time? The short answer is yes – but the property market is no simple matter, so let’s take a deeper look into why now could be the perfect time to get your home on the market.
Buyers are active
The first Bank of England rate cut in four years has led to a notable increase in buyer activity. Lower interest rates reduce the cost of borrowing, making mortgages more affordable for potential homeowners. As a result, the market saw a 19% surge in inquiries from potential buyers in August 2024 compared to the same period in 2023.*
This suggests that more people are considering buying homes due to lower mortgage rates. The rate cut has effectively re-energised the housing market, encouraging more people to act on their desire to buy, especially as the current economic environment favours homeownership.
Supply remains low
Despite the increased interest from buyers, the supply of homes on the market remains 3% lower than pre-pandemic levels.* A common seasonal trend in the housing market is that after the summer holiday season, many potential sellers delay their plans to sell until the new year. This seasonal slowdown in listings contributes to an already low housing supply, giving existing sellers a significant advantage. In markets where demand exceeds supply, you might be able to price your home more competitively.
Houses are selling
HMRC data shows that 90,210 residential property transactions were completed in August 2024, which is 5% higher than the year before.** This rise in completed transactions suggests a healthy market where not only are buyers actively looking for homes, but they’re also following through and closing deals. Increased buyer confidence, likely driven by the lower interest rates and a relatively stable economy, is leading to a greater volume of sales, which can further reinforce market stability.
House prices are predicted to rise steadily
House prices have shown modest growth in recent months, creating a more balanced and stable housing market. With prices rising steadily but not at an unsustainable pace, the market avoids extremes such as overheating or stagnation. This stable environment allows for reasonable negotiations between buyers and sellers, as buyers feel comfortable making sensible offers on properties that are accurately priced.
This equilibrium is beneficial to both parties: buyers aren’t overpaying, and sellers are more likely to get offers close to their asking price. As the demand from buyers continues to outpace supply, house prices are expected to rise further, albeit at a steady and manageable rate.
Are you wondering what price your home could achieve? Book your professional valuation today