Don’t Panic into Indecision- The Current South East Property Market
In this article we tackle the big questions currently facing buyers and sellers against the backdrop of rising interest and mortgage rates.
Reading the headlines is enough to send you into panic. Interest rates are rising, lenders are re-pricing mortgages, and the prospect of moving, buying, or selling, seems like a troublesome option. It’s a lot to weigh up especially if you’re in a situation where you do need to make a move or sell a property. So, what do you need to know? How is it going to impact your situation? Let’s dive in and tackle the big questions.
I need to sell a property, are there still buyers out there?
In short, yes. The pool of buyers will be smaller but particularly in the South East we’re still seeing lots of enquiries for people looking to move. Some are driven by specific needs, perhaps they’re relocating, up-sizing, or down-sizing, but there is still appetite out there.
Will it take me longer to sell my house?
This really depends. Over the last few months, we’ve seen properties exchange and complete quickly or we’ve seen lengthy chains take a while to progress. Once you’ve found a committed buyer you’ll need to rely on your solicitor and estate agent to help progress that sale and move it along as fast as they can. For many buyers their mortgage offers are close to expiring so they’re looking to lock in fast and get moving.
What about house prices? How are they faring in the South East?
Back in May, Halifax’s House Price Index reported that April saw the first annual decline in national property ‘sold’ prices since 2012, at a rate of 1%. However, this year-on-year decline is comparable to April 2022, when buyer demand was at an all-time high and prices accelerated to reflect that. If you’re looking for a quick sale, it’s crucial that you’re realistic with your asking price and that you take on expert local advice. If you’re not in such a rush and everyone’s in agreement that you can get a price at the top end, then you need to ensure you’re marketing to the right pool of people and you’re really clear on who your target buyer is.
Are high-end properties still selling?
Previously, people leveraged mortgages to be able to secure larger properties and fulfil their dreams. In the current market that’s harder, with money costing so much more than only a year ago. There are still plenty of people “with money” so the pool of potential buyers might be smaller but there are still cash buyers out there ready to commit to their dream home. So, if you’re looking to sell, don’t let this market send you into panic.
I’ve seen a house I love but I’m not sure now’s the right time to progress…
Look, buying or moving to a new house is a big life decision. Compared to other purchases there is often a larger emotional element and of course a lot of weighing up to do. But, if you think you’ve found your dream home, don’t let this market send you into decision paralysis. Seek out advice from a local estate agent and a trusted mortgage broker and look at your options. There are still plenty of opportunities out there and just because it might not be the perfect move for your friend, brother, or next-door neighbour, that’s not to say it’s not the right move for you.
My mortgage is coming up for renewal, I don’t know what to do.
While we’ve got plenty of local knowledge about the property market, we’re not the best people to offer mortgage advice. However, we do partner with an established mortgage advisor, Mortgage Medics, who are on hand to give you the best advice on what is happening in the current mortgage market. We appreciate that with interest rates rising, understanding what is happening in the mortgage market can be confusing and so speaking to an experienced advisor with access to the whole of the mortgage market can help give you the best guidance and help find you the best rates available.
The important thing to note is that while the headlines are shocking, we are not in the same situation as we were in the 2008 economic crash. There are still buyers, there are still sellers, and the market is still moving along. Yes, it may take slightly longer to sell your home but so long as you’re working with a trusted estate agent, they can help you navigate this changing market and ensure you get the right price for your property, whatever situation you’re in.
We understand that if moving home is on your horizon then you may still have questions about what is happening to house prices in your area which is why we encourage you to contact our team, who are more than happy to help.
Whether you require guidance on the property market or require mortgage advice from our Mortgage partners, to assess affordability for a future purchase, investment, or re-mortgage, we can help. Please contact us by completing our contact form and one of the team will be in touch to discuss your requirements.