There is no doubt that increasing interest rates, alongside the current inflation and fuel crisis, will lead to a hardening of the supply of money available for prospective buyers and tenants. This will reduce numbers of buyers and tenants in 2023 but will not take away the fundamental problem that they have in finding a place to live. We have already noticed people lowering their expectations so that their mortgages are affordable.
Given that the historic reality of 2022 was that we had, in some cases, multiple buyers for every house, we still believe that the market will hold its own and instead of having 20 or so buyers for every property we may only have 6 or 7 buyers and that balance of supply and demand for any commodity is healthy.
The housing market has never benefited from a boom/bust economy, and we look forward to stability where the number of houses coming for sale or let is met by the numbers of tenants and possible buyers.
The volatility of interest rates, gas prices, along with fuel, will continue to play a part and there is no doubt that all of us our will adjust our costs accordingly.
My prediction is that house prices will hold, as we still have a huge shortage of housing within the region, but the numbers of buyers will reduce to a calmer level, where hopefully asking prices are achieved and not with excessive numbers of buyers with multiple offers and best and final offers, which we have had in many cases in 2022.
At Sanderson Young our aim is to supply realistic facts to our clients about the value of their homes so that we can achieve the best possible price for them, based on what people are prepared to pay and what is fair value.
We look forward to helping you move in 2023!