“It’s a buyer’s market” is a frequently used expression during challenging economic periods. But what does it actually mean? And if you’re a buyer, how can you leverage this situation to your benefit? Keep reading to discover more.
What defines a buyer’s market?
In the real estate sector, a buyers market is when there is ample supply of property but limited demand. To be more precise, there’s an abundance of properties available for sale within a particular area, yet there’s a notable lack of prospective buyers.
What leads to a buyer’s market?
There are numerous factors behind the emergence of a buyer’s markets. Concerns about a potential housing bubble burst, extensive development of new property in local are, and significant economic instability are all valid factors. Essentially, anything discouraging substantial relocations can contribute to the formation of a buyer’s market.
What are the primary features of a buyer’s market?
The predominant feature of a buyer’s market is the decline in house prices. Typically, a significant decrease in prices is what prompts both buyers and sellers to perceive the existence of a buyer’s market.
Decreasing house prices frequently result in subsequent price reductions. This occurs as property owners aiming to sell discover the necessity of lowering their asking prices to match the prevailing level of competition. Additionally, homes are likely to linger on the market for extended periods, attracting fewer offers than usual.
Was the UK experiencing a buyer’s market in 2022?
No, the UK was not in a buyer’s market in 2022. Despite expectations that factors like COVID-19, Brexit, and the ongoing cost of living crisis might generate the uncertainty conducive to a buyer’s market, it actually remained a seller’s market.
This was due to an insufficient number of homes available to meet demand. Consequently, house prices continued to rise and remained highly sought after, even as interest rates increased.
Is the UK experiencing a buyer’s market in 2023?
In 2023, the UK housing market leans much more towards a buyer’s market compared to recent years. There has been a notable increase in property supply as developers responded to the heightened demand during the COVID-19 era. Additionally, buy-to-let purchases are regaining popularity as interest rates stabilise, rendering mortgages more affordable.
Crucially, house prices have either decreased or stabilized in significant markets throughout 2023, with no substantial expected increases into 2024. Some analysts even forecast a potential 3% decline in prices for the year. Consequently, homeowners aiming to sell are facing heightened competition to attract buyers, who now enjoy more options and flexible financing opportunities.
How can buyers take advantage of a buyer’s market?
Buyers can maximize the opportunities presented by a buyer’s market by:
Exploring various options with confidence, knowing that there is plenty of supply available.
Submitting competitive offers, including what’s often termed as ‘cheeky offers,’ particularly if the seller is highly motivated. A ‘cheeky offer’ typically entails a price approximately 15% lower than the asking price.
Negotiating with sellers to retain desired fixtures and fittings within the property. Items like white goods, garden furniture, and period feature fixtures are worth considering in such negotiations.
Will UK house prices decrease in 2024?
Many news outlets and industry analysts anticipate a decline in UK house prices in 2024. While most don’t foresee a significant crash in the housing market, a modest decrease of around 2-3% appears probable overall. This would further reinforce the buyer’s market.
It’s worth noting that national housing market trends don’t uniformly impact all regions. When considering a purchase, it’s advisable to conduct research into local house price trends. For urban properties, it’s also beneficial to examine neighbouring towns and villages. Similarly, for rural purchases, it’s valuable to assess the situation in nearby major cities. This broader perspective provides a clearer understanding of regional dynamics.
How can I sell my house fast?
At Olivia Rose Estate we are here to help you sell your house fast. We can offer a guaranteed cash purchase for your property in a timescale that suits you. It could be a couple of weeks, or even just a few days. You no longer have to pay estate agents fees and deal with the potential long delays of a traditional sale process. It is not uncommon for house sales and purchases to fall through due to broken chains or mortgages not being approved at the last minute.
We will help guide you through the process of selling your home, whatever your reason for selling. From the initial valuation to the final completion date, rest assured you are being guided by trusted property experts who are here to help you get the most out of your house sale and ensure you have a hassle-free experience.