According to Zoopla's survey data, buyer demand increased by 11% compared to the same period last year, while sales volume also rose by 15% year-on-year. Nevertheless, surprisingly, prices decreased by 0.5% year-on-year, with prices rising in 7 regions while falling in 5 others.
Sarah Coles, Personal Finance Lead at Hargreaves Lansdown, analyzed the performance of the real estate market in February. She noted that the market continued its active trend from the beginning of the year, with many buyers and sellers re-entering the market, leading to another increase in sales volume. However, while this is good news for sellers, prices are facing downward pressure, with asking prices gradually declining, presenting challenges to the market.
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Coles further pointed out that the decrease in mortgage rates from the end of 2023 to the beginning of 2024 was one of the key factors driving market optimism. However, with rates now beginning to rise, this may affect the purchasing plans of some buyers. Although current rates remain roughly the same as a year ago, with the two-year average rate below 5.75%, the anticipated rise in rates may cause some buyers to adopt a wait-and-see approach.
It is worth noting that there are significant differences in market performance across different regions. The situation in the southern regions is relatively more severe, with significant price declines due to affordability issues caused by substantial price increases in recent years. London, however, is an exception, as the speed and magnitude of price increases are not as high as in other southern regions, allowing average incomes to keep up with some of the price increases, making London one of the hottest selling areas currently.
Apart from the southern regions, prices in other regions of the UK continue to rise, albeit at a slower pace, with relatively limited declines. Overall, the real estate market in February presents a complex and dynamic situation, requiring caution from both buyers and sellers to seize the best trading opportunities.
