With evenings getting lighter and daffodils starting to bloom, we thought we’d dive into the Spring property market to explore the latest trends and insights. So join us for a market analysis that’s sure to capture your interest!
- 0.8% (£2,906) increase in average property price this month
- Annual asking price growth at +3.0%
- First-time buyer properties spearhead recovery
- Larger home sales fall behind
- Mortgage rates retreat from last year’s peak
- Devon property prices witness 6.5% year on year growth
The Evolving Market Situation
As spring arrives, Devon’s property market reflects an air of caution among new sellers, with the average property price rising by 0.8% (£2,906) to £365,357. The annual price growth rate slows to +3.0%, with asking prices now £5,800 below the peak observed in October. Despite economic challenges, the market is gradually approaching pre-pandemic activity levels.
Devon Property Prices: A Yearly Overview
Over the past year, asking prices in Devon have risen significantly by 6.5%. With a 1.4% increase in the monthly change, the average price now stands at £352,301.
The Recovery: First-Time Buyers at the Forefront
First-time buyer properties (say 2 bedrooms or fewer) are driving a cautious market recovery. Sales agreed in this sector are only 4% behind the same period in 2019 and 18% behind 2022’s exceptional performance. Consequently, average asking prices for these properties are a mere £500 below their peak last year.
Larger Homes: A Slower Pace
In contrast, sales agreed in the top-of-the-ladder sector are 10% behind the same period in 2019, respectively. The 1.2% increase in the most expensive property sector may be overly optimistic given the slower recovery in sales agreed numbers.
The Mortgage Rate Landscape
It’s good news for borrowers. Average mortgage rates have declined since last year, with rates for a 15% deposit five-year fixed mortgage now at 4.65%. Though down from last month’s 4.75% and October’s 5.89%, this rate is still higher than the 2.48% observed in March 2022.
Expert Perspective: The Hyper-Local Market
It’s pretty interesting to see how smaller and larger homes are performing so differently in this fast-paced, hyper-local market. If you’re thinking of selling during the bustling spring season, our best advice is to have a chat with your local estate agent who will be able help you navigate the scene. And obviously, if you’re around Mid Devon and Crediton, we’d be thrilled to hear from you at Helmores!
Frequently Asked Questions
Q: How is the spring season affecting Devon’s property market?
A: Spring brings increased buyer activity and traditionally strong interest, making it a great time to sell.
Q: What’s driving the recovery for first-time buyers?
A: Cautious pricing by sellers and buyer assistance programs are helping first-time buyer properties recover faster.
Q: Are larger homes experiencing the same recovery as smaller properties?
A: No, larger homes are lagging behind, with sales agreed numbers for top-of-the-ladder and second-stepper sectors lower than in 2019.
Q: How have mortgage rates changed recently?
A: Mortgage rates have declined since last year, making borrowing more affordable for buyers in the current market.
Q: What should sellers do to capitalise on the spring market?
A: Sellers should consult with a local estate agent to get informed advice on the hyper-local market and make the most of the spring selling season.
Stats source: Rightmove