The property market has kicked off 2024 with a flurry of activity, recording significant milestones and showcasing a cautious optimism among buyers, sellers, and industry experts.
A comprehensive round-up of recent mortgage and housing market statistics reveals a nuanced picture of a market that is both gaining momentum and remaining acutely sensitive to pricing and economic signals.
Twenty7tec has announced that the week beginning February 5th, 2024, was the busiest on record for the platform, with 528,539 mortgage searches. This period also included two of the top three busiest-ever days on the platform, emphasising a robust demand for mortgage financing. This surge in activity suggests that potential buyers are actively seeking opportunities in a market that is gradually showing signs of recovery. Nathan Reilly, director at Twenty7tec, said:
“As the weeks pass in 2024, we’re seeing increasing numbers of records set – with last week being our busiest ever on record. Sometime around 3pm on Monday 12th February, we will surpass the busiest-ever first 50 days of the working year for mortgage searches. The previous best was in 2023, and we’re going to overtake that figure with over six days to spare.
Comparing the performance this year to date versus last year’s first 50 days is like watching the silver medallist getting lapped twice in a 5,000m Olympic race. Hopefully, that metaphor goes some way to explaining quite how busy advisers have been over recent weeks.
January was already our busiest month ever on record, with over two million mortgage searches on our platform. But February has surpassed even those heights so far. Of course, it’s a shorter working month and we have half-term school breaks and other things which may cool the market slightly, but right now, the market is clearly hot.”
Rightmove’s weekly mortgage tracker offers insights into the current state of mortgage rates and their impact on affordability. Notably, the average 5-year fixed mortgage rate has seen a slight decrease to 4.69% from 4.70% a year ago, while the average 2-year fixed rate has marginally increased to 5.03% from 5.02%. These figures suggest a stable yet cautious lending environment. Importantly, the average monthly mortgage payment for a typical first-time buyer property has decreased slightly to £1,066, down from £1,076 a year ago, offering a glimmer of relief for those looking to enter the housing market.
What’s more, the beginning of 2024 has witnessed a notable increase in market activity, with agreed sales in the first six weeks up by 16% compared to last year, and 3% higher than in 2019. This indicates that early-bird buyers are eager to capitalise on what they perceive as favourable market conditions. The increase in both buyer inquiries and new listings by 7% year-on-year further corroborates this momentum. However, the market’s price sensitivity remains a critical factor, with accurately priced properties moving quickly, while those overpriced linger on the market. Tim Bannister Rightmove’s Director of Property Science, commented:
“We said that February would be an important indicator for the year ahead, and the question was whether the Rightmove Boxing Day bounce in buyer activity would keep its spring into March or lose momentum. It’s proved to be the former, with the number of sales agreed continuing to considerably outstrip last year. Early-bird Boxing Day buyers got a head start in cherry picking from a record level of new property choice and have now been joined by many other buyers also believing that 2024 offers the right market conditions to move. Mortgage rates have fallen considerably from their peak and are now remaining broadly stable after the uncertainty of late 2022 and 2023.
Momentum to move in 2024 is continuing to build, but prospective sellers mustn’t get carried away. Buyers now have more choice of property for sale and many are still very price-sensitive, with mortgage rates remaining elevated. Sellers who are serious about moving this year would be well-advised to ride this wave of increased buyer confidence with an attractive asking price before any pre-election jitters or unexpected events dampen the momentum.”
The housing market’s resilience in the face of economic uncertainty is notable, with some regions experiencing annual price growth and the rental market remaining robust. The increase in buy-to-let mortgage arrears and the pressures on landlords highlight the ongoing impact of high inflation and interest rates on the property sector.
As we move further into 2024, the property market appears to be at a critical juncture, balancing between recovery momentum and economic caution. The resilience shown by buyers and sellers, coupled with strategic pricing and an understanding of market dynamics, will be key to sustaining this momentum. With the budget on the horizon, additional support for first-time buyers could further invigorate the market, making the dream of homeownership a reality for more individuals in a gradually stabilising economic landscape.
