The real estate market is heating up with an increasing number of people looking to buy or sell, according to two separate reports.
The latest survey by the Royal Institution of Chartered Surveyors (Rics) showed that estate agents and surveyors are seeing an increasing number of inquiries from buyers, as well as a greater number of sellers coming to the market.
The monthly survey takes the temperature of Rics members, both estate agents and surveyors, and offers a snapshot of what is happening in the property market across the country.
Rising market? Estate agents and surveyors are seeing an increased number of buyer inquiries
Nationally, more Rics members reported an increasing number of buyer inquiries in January than those who reported fewer buyer inquiries.
Rics said it was the strongest month for buyer demand since February 2022. At that time, house prices were up 10.8 per cent year-on-year, according to Halifax.
Mark Wood, a member of Cambridge-based Rics, said it was an “encouraging start to the year with increased activity from motivated buyers”.
“Falling mortgage rates and talk of base rate reductions are encouraging for potential buyers,” he added.
Edward Rook, a member of Sevenoaks-based Rics, added: “Reduced mortgage rates have left buyers out in the cold.”
Nationally, more Rics members reported an increasing number of buyer inquiries in January than those who reported fewer buyer inquiries.
As the number of buyers increases, the number of sellers coming to the market also increases.
Last month also saw an increase in the flow of new instructions put up for sale, according to Rics.
Having been stuck in negative territory for much of the last few years, the January Rics survey reading marks the most positive response to the new sales guidance since March 2021.
House hunting: Rightmove said new sales listings are 13% higher than last year, while buyer demand is 7% higher.
This is in line with separate figures from Rightmove, which revealed that the number of new properties coming onto the market for sale is 13 per cent higher than last year, while buyer demand over the same period is up 7 per cent. elderly.
Marion Currie, Rics member in Galbraith, Scotland, said: ‘Requests for market appraisal and viewing increased as the month progressed and sellers and buyers woke up from the post-Christmas lull.
“We expect this to increase as we approach February, but realistic values are key to a healthy market this year.”
Perhaps not surprisingly, Rics members agreed on an increase in sales, with more members reporting increasing sales figures compared to those reporting fewer sales.
Tarrant Parsons, senior economist at Rics, said: ‘The UK housing market has seen continued improvement in buyer activity during the first part of the year, supported by the recent easing of mortgage interest rates.
“While sales volumes for much of next year are likely to remain relatively subdued compared to the long-term average, the outlook has now consistently turned modestly brighter in recent survey reports.”
January Rics survey reading marks most positive response to new sales guidance since March 2021
Record number of home appraisal requests in January
An increasing number of homes look set to hit the market this year, according to Rightmove, after revealing that a record number of homeowners contacted an estate agent to value their home last month.
The real estate website revealed that the number of people requesting a home valuation from a real estate agent was 23 percent higher in January than the previous record in January 2023, and 27 percent higher than the third highest month of history, which was in July 2020.
One of the factors contributing to this renewed confidence among many sellers and buyers to move forward with their plans in 2024 is lower mortgage rates.
Mortgage lenders began cutting rates starting in August and this rate cut continued through 2024. In January alone, more than 50 mortgage lenders reduced their residential rates, some more than once.
Average mortgage rates have continued a slow downward trend since then, with the average five-year mortgage rate falling from a high of 6.37 percent in August to 5.22 percent today, according to Moneyfacts .
While cuts have largely stalled over the past two weeks, and some lenders have raised their rates, borrowers who get the cheapest deals can now get a rate of just under 4 percent when fixed for five years or just over 4 percent. by fixing for two years.
Tim Bannister, property expert at Rightmove, said: ‘Early data suggests estate agents have had a busy start to 2024, with more activity in the market than at the start of last year.
“This activity we’re seeing is likely a combination of those who recently decided to make 2024 their year to buy a new home, and some pent-up demand from those who took a step back last year to consider their options while the outlook for mortgage rates were less clear.
“It’s still early, but the data from the first month is encouraging.”
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