May 2024 Property Market Update

The property market is buzzing with activity this May, and we’re here to break down the latest Rightmove House Price Index for you. Whether you’re buying, selling, or just curious about the trends, we’ve got all the essential updates!

UK Overall 

This May, the average price of properties coming to market rose by 0.8%, or £2,807, setting a new record at £375,131. Historically, May has been a strong month for price growth, with new records set in 12 out of the last 22 years. Larger homes, often referred to as the top-of-the-ladder sector, are leading this charge, with prices in this segment up by 1.3% compared to last year. However, it's worth noting that overall, prices are only 0.6% higher than they were in May 2023, highlighting the price-sensitive nature of the current market.

Regional Trends

The North East of England, with the most affordable average prices in Great Britain, has experienced the strongest price growth. Meanwhile, London continues to show resilience with steady price growth, making it a hotspot for both buyers and sellers.

South West Insights

Here in the South West, we’ve seen a robust market performance. The region's beautiful landscapes and quality of life continue to attract buyers. Prices in the South West have increased by a notable 1.2% over the past month, reflecting strong demand. Whether it’s the coastal towns or charming countryside properties, the South West remains a highly desirable area for homebuyers.

Affordability and Market Sensitivity

Despite the rise in prices, the market remains very sensitive to affordability issues. Mortgage rates are still high, which stretches the budget for many potential buyers. The Bank of England’s Base Rate has remained at 5.25% since August 2023, significantly affecting mortgage rates. This is a key consideration for buyers who are navigating their finances in this challenging economic environment.

Pent-Up Demand

There's a noticeable increase in buyer and seller activity driven by pent-up demand. This demand, combined with the momentum of the Spring selling season, has been strong enough to push prices to new highs. However, affordability remains a significant concern, especially with the ongoing high mortgage rates.

Tips for Sellers

Rightmove’s data suggests that sellers who price their homes competitively from the outset have a distinct advantage. On average, a property priced right from the start takes about 32 days to find a buyer, compared to 112 days for properties that require a price reduction after coming to market. This strategy can help sellers move their properties more quickly in this price-sensitive environment. Additionally, providing accurate and detailed information about your home can attract serious buyers and expedite the selling process.

Looking Ahead

Despite the current challenges, market activity is expected to improve throughout the year, potentially leading to higher transaction numbers by the end of 2024 compared to last year. The lengthy legal completion process remains a barrier, but improved market conditions and levels of activity are positive signs. For those thinking about moving, now is an ideal time to list your property to achieve a sale before the year’s end. Many prospective sellers are already picturing themselves celebrating the festive season in a new home, and listing now increases the chances of making that dream a reality.

Buyer's Perspective

For buyers, the market's price sensitivity and high mortgage rates mean that it’s crucial to be well-prepared and financially ready. However, the current market also offers opportunities, especially in regions with strong growth potential like the South West. Working with knowledgeable estate agents can help you navigate these waters, find the best deals, and secure your dream home.

Final Thoughts

For buyers and sellers in Crediton and Mid Devon, navigating the property market can be both exciting and challenging. High mortgage rates and affordability concerns are significant hurdles for buyers, but we anticipate rates will ease soon, making financing more accessible. Let's keep our fingers crossed!

For sellers, pricing your property correctly from the outset is crucial. Properties priced right tend to sell within 32 days, compared to 112 days for those needing a price reduction.

To attract serious buyers, it's essential to present your home in the best light with professional photography, drone images, videos, and interactive virtual tours—tools that buyers now expect.

Additionally, the lengthy legal completion process can be a barrier, but we have two dedicated sales progressors whose sole job is to handle the post-sale process, guiding you through every step.

We’re here to help with any property-related questions or just to have a chat over a coffee. Drop us an email at property@helmores.com or call 01363 777999. Let’s make your property journey as smooth and successful as possible!