Home Sales Increase by 14.8% as Mortgage Rates Drop - What Does It Mean for Coulsdon, Purley, and Chipstead?

Great news for anyone eyeing the housing market in Coulsdon, Purley, or Chipstead! The latest data reveals a significant 14.8% surge in home sales compared to last year, thanks to a welcomed dip in mortgage rates. But does this mean it's smooth sailing for sellers in these areas?

The property market across the UK is seeing a notable uptick, with an 8.35% increase in agreed sales compared to January last year. From Inner London to the South East and beyond, regions are experiencing a surge in property transactions, fueled by lower mortgage costs and increased buyer interest.

Not only are more properties changing hands, but there's also a boost in supply, with listings up by almost 14% from last year. London stands out with a remarkable 21% rise in buyer inquiries, surpassing the national average.

Net sales are also on the rise, painting a rosier picture for sellers, with a notable 14.8% increase compared to last year. However, despite this positive momentum, experts advise against expecting a sharp rise in house prices for 2024, as the market remains delicately balanced.

What Does It Mean for Coulsdon, Purley, and Chipstead?

Taking a closer look at these areas, the property market has been leaning towards sellers' territory for some time. In 2022, it peaked as an extreme sellers' market, but in 2023, it shifted slightly, hovering around a hot sellers' market status.

For sellers in these regions, it's essential to adjust expectations and be strategic in pricing. With homes potentially staying on the market longer, realistic pricing becomes even more crucial. On the flip side, buyers may find more options and negotiating power in a less competitive market.

So, where does the market stand?

Determining whether it's a buyers', balanced, or sellers' market relies on the ratio of properties labeled as "Sold STC" and "Under Offer" compared to the total number of properties for sale. For example, if there are 45 properties sold STC out of 100 available, then the proportion is 45%.

This isn't merely a numerical exercise; it's a barometer of market sentiment:

• Extreme Buyers' Market (0%-20%)

• Buyers' Market (21%-29%)

• Balanced Market (30%-40%)

• Sellers' Market (41%-49%)

• Hot Sellers' Market (50%-59%)

• Extreme Sellers' Market (60%+)

These brackets carry significant weight, influencing everything from listing prices to negotiation dynamics.

Current Property Market Snapshot for Coulsdon, Purley, and Chipstead

To assess the current state of the Coulsdon, Purley, and Chipstead property market, let's analyze our latest findings for January 2024. The data is sourced from 'The Advisory' website, which has been tracking market statistics for several years, spanning from the summer of 2018 to January 2024.

What Do the Statistics Show for the Coulsdon, Purley, & Chipstead Area Since 2018?

The data reveals that in the summer of 2022, the market was clearly an extreme sellers’ territory at 74%. Throughout 2023, the Coulsdon, Purley, & Chipstead property market transitioned, maintaining a range in the mid-50s, indicative of a hot sellers’ market (although weaker than the summer of 2022). As of January 2024, it continues to reside in hot sellers’ market territory.

Navigating the Market:

Sellers should focus on standout marketing tactics, like virtual tours or targeted social media campaigns, to attract buyers in a cooling market. Buyers, on the other hand, should have their finances in order and be prepared to act swiftly in competitive situations or negotiate favourable terms in a softer market.

Looking Ahead:

As we move further into 2024, understanding market dynamics will be key for both buyers and sellers. Flexibility and staying informed will be essential in navigating the evolving property landscape in Coulsdon, Purley, and Chipstead.

What's your take on the current property scene in these areas? Share your thoughts and experiences as we continue to monitor the market trends together.

If you would like to chat or have more information, give me a call on 020 8763 8060 or email hadley@parkandbailey.co.uk