Are we heading for a housing market bounce in the coming months? Well, even with fluctuating mortgage rates, recent data from Rightmove and Zoopla have predicted a 10% increase in total home sales with a forecast of over 1.1 million transactions in 2024 compared to 1 million in 2023. Such predictions have come about on account of a 21% increase in the number of homes for sale and an 11% rise in buyer demand. If the first month of 2024 is anything to go by then 2024 is likely to be a good year for the housing market!
To back this up further the Bank of England recently reported that there was a significant rise in mortgage approvals in January reaching 55,000.00, accounting for a 7% increase from the previous month. The phase ‘New Year, New Home’ comes to mind! January’s figures show a three-monthly increase suggesting that buyers are now starting to accept that current mortgage rates are ‘the new normal’, another phase we have quickly become accustomed to over a short period.
We now have an even clearer picture of what the year may bring following the chancellors budget delivery on the 6th March. With no significant changes to Stamp Duty Land Tax which many in the industry felt was the boost the housing market needed; one could argue that the figures from the first month of this year are reason to be optimistic for the housing market in the months ahead.
Priory Law March 2024