The property market remain “stable but subdued” as data for Q3 2023 suggests that the usual post-summer uplift has failed to materialise. Consumers continue to come to terms with inflation and interest rates and property price; and commentators have pointed to stable supply and demand as reasons to be positive.
However, the figures supplied by Landmark latest Property Trends Report show that completions remain challenging, and despite being up 4% on Q2 2023, are 35% down on the same time 2019.
The report identifies 4 key milestones in the transactions process and tracks volumes over the course of the year. Listings, Sold Subject to Contract (SSTC), Searches Ordered and Completion are all tracked over 12 months and benchmarked against 2019; the last time we could point to a “normal” market.
On demand, listing levels are slightly above the 2019 benchmark in both August and September, with August reporting a 2% increase and September a 3% uplift on the same period in 2019. And supply in 2023 remains consistent sitting around the same levels over the last 6 months. The positive numbers on listings and supply have had a positive impact on SSSTC and searches ordered which have both seen an upward trend over the course of July, August and September.
SSTC volumes in Q3 2023 tracked 36% below levels seen in Q3 2019 which will inevitably impact Completions in Q4.
However the overall picture shows a property market significantly down on 2019 with sales agreed projected to be 15% below the five year average next quarter according to a report from Street.co.uk.
Simon Brown, CEO of Landmark Information Group, said:
“Amidst the ongoing challenges of the economic landscape, our data paints a picture of an unusually muted yet stable market. The post-summer bounce back we would usually expect to provide a boost going into Q4 hasn’t yet happened, leaving the market in a remarkably flat position.
“While this stabilisation means an end to the volatility of previous quarters, it also leaves us in unchartered waters, with few in the industry remembering such a prolonged period of stagnation. However, we are operating in a resilient market, meaning growth will eventually return. For now, we wait to see what the external landscape brings in Q4.”
The Landmark Property Trends Report Q3 2023 can be reviewed in full here.
In a special edition Today’s Conveyancer podcast, host David Opie speaks with reports authors Ochresoft MD Rob Gurney and Landmark Estate Agency Services MD Ben Robinson to discuss the contents of the report and what it means for the remainder of 2023 and into 2024.
