While the start of 2023 has been sluggish for the housing market, there are signs the spring months could once again prove to be a prime time to secure a deal on a property.
Here, Which? analyses what's happening in the UK property scene, and whether or not this season is a shrewd time to buy.
Why is spring a popular time to buy a house?
Speak to an estate agent, and they are likely to tell you that either the spring or early autumn are the best periods of the year for the housing market.
Better weather and longer daylight hours fuel the appetite of both buyers and sellers in March, April and May.
Plus, lots of home-hunters are keen to move into a new home before the start of summer, with gardens and outdoor space being at the top of many wish lists.
The spring months are also a popular time for parents with young children to start house-hunting, as they aim to finalise a transaction before the six-week summer holidays.
Rightmove says March is the best month of the year for selling a house, with the number of buyer inquiries being at its highest. This is followed by April and May.
What's happening to the housing market?
Supply is improving
Last year saw a chronic undersupply of homes for sale, which pushed prices higher but also acted as a drag on sales completions. However, the latest findings from Zoopla show there are now 65% more homes for sale than the same time a year ago.
Meanwhile, the average estate agent has 25 homes available, compared with a low of 14 homes this time last year. A better supply of homes puts buyers in a easier position this spring.
House prices have fallen from their peak
Following years of continual increases, property prices have now come down from their peak. Latest statistics from the Land Registry show the average UK house price fell by 1.1% in January, taking it to £289,818.
Meanwhile, recent data from Nationwide – which has recorded seven consecutive monthly drops – shows that prices fell at their fastest annual pace for 14 years in March 2023.
In contrast, Rightmove and Halifax both reported a monthly house price increase (0.8%) for March. The unexpected rise could suggest prices won't falter this spring as demand from buyers increases.
Find out more:Buyers have strong negotiating power
According to estate agent trade body Propertymark, 75% of homes are selling below their original asking price – meaning buyers can hold the upper hand when it comes to negotiating a deal.
Rightmove reports that the average price reduction is 6% – the equivalent of £22,000, based on the current national average asking price of £365,357.
The likelihood of securing a price reduction should therefore be on the minds of buyers when browsing property listings this spring. Depending on the level of competition from other buyers, you might be able to take a chunk off the purchase fee.
What's the average time to sell?
According to Hamptons, properties that went under offer in February had been on the market for an average of 64 days.
The graph below shows how last spring was the time of year when properties sold the fastest, with a low of 26 days in May.
While we won't be seeing a return to these lowly figures in 2023, it is anticipated that the remainder of spring will prove to be 'hotter' than it has been in recent months.
Mortgage rates
Following several weeks of steadily falling mortgage rates, figures are now dropping at a slower rate. The average two-year fix is 5.32%, while the average five-year rate is 5.05%.
Lenders have been undercutting each other to offer the cheapest deals, with some sub-4% offers being available to those with larger deposits.
Find out more:The pros and cons of buying a house in spring
Often named as the best time of year to buy, there are both upsides and downsides to be aware of when looking to move in the spring:
Pros
Buyers have a wider range of options than during other seasons:House-viewing can be a nicer experience:It's easier to move in better weather:Cons
It might not be the best time to pick up a bargain:You could be rushed into making decisions:How other seasons compare
If you’re looking to snap up a bargain, then November and December are likelier times of the year to get a good deal, as fewer people tend to be on the hunt.
What's more, sellers who've failed to get a deal over the line in the summer could be keen to push through a sale, to avoid having to start the new year in the same situation. Therefore, this could be a great opportunity for buyers to negotiate a lower offer.
That being said, sellers do tend to go into hibernation over the winter, so the number of options could be slim.
The height of summer, from July to August, is traditionally a quieter spell for the housing market, as it's a more popular time to go on holiday. Again, as a buyer, you could take advantage of the reduced demand, as frustrated sellers could start to chip away at their asking prices.
Like the springtime, early autumn is a buoyant period for the housing market. The summer holidays will be over, and anyone wanting to move is usually keen to do so before Christmas. As a result, you can expect to face competition if you're looking to buy a property in September and October.
source https://www.which.co.uk/news/article/is-spring-still-the-best-time-of-year-to-buy-a-house-aliBG2U5rgVo