House price update from Zoopla

- Wed 01 May 2024

According to a latest Zoopla article, buyer confidence is improving, and 12% more homes are going under offer compared to this time last year…

The housing market in 2024 is showing a picture of balance, which is good news for sellers as it shows people have more of a chance of moving. Zoopla states the number of homes available for sale is growing but house inflation is proving broadly static.

Seller's position:

One of the key takeaways for sellers is the improved balance in the market. The availability of homes for sale is steadily increasing, providing a broader pool of options for prospective buyers. Sellers will have to be competitive with pricing, although prices remain fairly stable at this moment in time. This stability is encouraging for sellers, as it means their properties stay appealing without prices reducing too quickly.

Buyer's Perspective:

For buyers, the steady house prices bring some relief from the struggle of higher mortgage payments, which have shot up by 60% over the last 18 months. Plus, there are more homes available, and buyers are feeling more confident, leading to a 12% increase in agreed sales over the same period in 2023. There are talks of mortgage rates decreasing, which provides further confidence.

Zoopla’s Executive Director of Research, Richard Donnell, says: “The housing sales pipeline is now rebuilding after a period of lower sales, when mortgage rates spiked higher in 2022 and 2023.”

“Our data shows that the housing market remains on track for 1.1m sales completions in 2024, up 10% on 2023.”

Market Activity:

The House Price Index for April 2024 reflects a positive direction in market activity. Mortgage approvals for home purchases have risen by over 30% year-on-year, signalling a return to pre-pandemic levels. While the lag between agreeing to a sale and completion may delay the full impact, Donnell anticipates a forthcoming upturn in sales completion data.

Impact of Mortgage Rates:

The affordability of homes is significantly impacted by mortgage rates, particularly in high-value markets like southern England. Rising mortgage rates, coupled with stagnant income growth and escalating living costs, have prompted sellers to adjust asking prices to attract buyers. However, at a national level, the proportion of homes experiencing annual price falls has decreased from 82% to 64%, indicating a more balanced market outlook.

House price update from Zoopla

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