So – 2023. How was the year for the local housing market? There were mixed messages throughout the year, with different commentators reporting either good or bad news. So what was the real news?
In my opinion the local market was exceptionally strong for lettings and ‘fine’ for sales. Fine may seem a fairly bland word, but it is an appropriate description. The market was not brilliant, but it was certainly not dreadful either.
The national media portrayed a gloomy picture all year but, as I said in my articles last year, this was not a real portrayal of market conditions. Bad news always sells, especially where housing is concerned, and the media traditionally talks the market down at all times. Whilst not as busy as the post lockdown market of 2020, 2021 and, to an extent, 2022 we saw a healthy sales market last year.
2019 was the last ‘normal market’ that we saw, so it is worth comparing our figures for 2019 and 2023. In the Tettenhall office we agreed sales on approximately 10% more properties in the first eleven months of the year in 2023 compared to 2019 with a combined capital value which increased by almost 30%.
The average price of properties sold also increased by around 18%. It is fair to say that 2023 was not a bad year compared to the pre-pandemic market! And that doesn’t even take into account the full picture. In the figures quoted above I have not included some off market sales, which I consider to be unusual sales.
Had these been included, the capital value of sales agreed would have increased by 37% as opposed to 30%, but I think that this would not be an accurate portrayal, even if technically true!
The upper end of the market performed well which is always a good barometer of the market. If the top of the market is moving, it normally means that all of the market is fairing well.
Generally speaking the lower and middle end of the market needs to be moving to allow movement in the upper end. We agreed sales on more than twice the number of houses at sale prices in excess of £1 million in the first eleven months of 2023 compared to 2019. This is quite an improvement, and one that should be noted.
And Lettings? Our lettings team enjoyed their most successful year to date in 2023.
Our portfolio of managed properties topped £140 million in capital value for the first time and income was significantly increased.
The private, ‘off market’ side of the lettings business also increased by a large margin and this sector now attracts £75,000 in rent every month.
This is a specialised and tailor-made offering which included, in 2022, showing a client a property on Christmas Eve in and moving them in on Boxing Day!
Interestingly, the sales team also saw a large increase in ‘off market’ deals in 2023 with almost £9.5 million worth of property having been agreed with no advertising undertaken.
This has been a huge area of growth for the team and increasingly suits both buyers and sellers alike who prefer their dealings to be under the radar and maintain their privacy.
Not to be outdone by the lettings team with their Christmas Eve viewing to Boxing Day moving in transaction the sales team managed an incredibly quick transaction on a house in South Staffordshire.
A buyer viewed the property on a Monday morning and moved in to the house exactly two weeks later. Completion took place in just 11 working days! That is a record for us and one of my highlights of the year!
So what do I think will happen in 2024? Only with a crystal ball can I be certain, but the signs are that the market should, once again, be ‘fine’, and may even be a little better than just that.
Mortgage rates are beginning to fall, the cost of living is no longer spiralling and the economy, as a whole, appears to be stabilising. This should create a stable market and all a good housing market ever requires is stability, an arena where both buyers and sellers know where they stand.
Only time will tell if I am right in my prediction for 2024. As ever, if you want to know what is happening in the market at any given time, please do not hesitate to contact us and we can advise.
We here to help, so if we can be of any assistance at any time, please give us a call!
