The ‘let’s wait and see’ what happens with Brexit, is over! and with it a new year! And every factor that drives a sustainable and balanced Seller/ buyer market is in place, e.g. affordable borrowing, steady flow of properties for sale, low unemployment and a more positive sentiment about a well-managed economy.
Rightmove predicts that the price of property coming to market in Britain will rise by 2% in 2020. With a clear majority in the election, there is now an opportunity to release some of the pent-up demand in the spring, and for some modest upwards price movement.
2020 demand and supply indicators:
One year ago we forecast that there would on average be no upwards price movement, with 2019 seeing a subdued 0% price change given the uncertain outlook and stretched buyer affordability. 2019’s annual rise stands marginally above our forecast at 0.8%, with a stronger than anticipated end to the year. There are many positive indicators though in the market as it goes forward. Traditionally we do tend to see a dip in pricing levels in December, but this month’s 0.9% fall in pricing is the smallest at this time of year since December 2006. A feel good factor is really important in the property market and this has already been experienced with more buyers looking for property than previously . This market is perfect for motivated sellers; there has been a shortage of properties to buy so when properties have been priced right, they sell. Prices are always pushed upwards when demand outstripping supply.
So, there is so much opportunity for 2020. Life continues to move on no matter what is happening elsewhere, people get married, promoted, have children, relocate and all of this creates the need to move home. Affordable borrowing with low interest rates are available and the start of 2020 will see many mortgage providers competing for business. With the increase in interest over the Christmas period this is a great time for you to realise your opportunity too.
We wish you a happy and successful 2020.