Market Update – March 2023
North London and Hertfordshire property market continues recovery with Spring market
By Nick Staton – Owner Statons Estate Agents
We’ve not seen a traditional seasonal springtime market for some years now, what with the Covid lockdowns in 2020/21 and the frenzied markets of the last couple of years, it’s good to see the return of more normal times. As along with the first signs of the coming Spring in our parks and gardens, so too are the early signs of the seasonal springtime property market.
With the local property market continuing to recover from the impacts of the financial crisis of the latter part of last year, I’m encouraged to see the early signs of a return to the seasonal ebb and flow of the traditional UK property market.
The seasonal trend is further confirmed by this month’s House Price Index from property portal Rightmove, the index shows that the market is continuing its recovery, reporting that the average asking price of property coming to the market is up by 0.8% on the previous month. Whilst this is only a small increase, it does show that despite the doom and gloom predictions of the media, the property market, as well as the economy as a whole, is a good deal more resilient than we are often led to believe.
First-time buyers
The Index confirms our own experience locally, with first-time buyer properties showing the strongest recovery in the run-up to the spring market. Rightmove’s stats show the average asking price of first-time buyer properties are only £500 lower than last year’s record high.
The first-time buyer market underpins the market as a whole, and as sales agreed in the first-time buyer sector have recovered faster than expected, this will, over the coming weeks, have a knock-on effect for the rest of the market.
Confidence is key
Whilst the Bank of England’s decision to increase interest rates last week is disappointing, the economic signs are more optimistic, with many predicting that this is likely to be the last interest rate rise, certainly for now, and the hope is that in the not too distant future rates may begin to lower.
Confidence in the property market is key to the continued recovery, a significant influencer is the stability within the mortgage markets. Prior to the rate rise, average mortgage rates have fallen back from their peak last year, with the average rate for a 15% deposit five-year fixed mortgage having been 4.65%, down from last month’s 4.75%, and October’s 5.89%.
The impact of the recent increase is likely to see the average increase, although, with stiff competition within the mortgage markets, rates are likely to remain under 5%, which should help to maintain confidence for would-be home movers.
The Spring Market
As we approach what has historically been the busiest time in the property market calendar, and with confidence and a degree of stability returning from the turbulence of late 2022, it is encouraging to see the return of more civilised times within the property market.
The incredibly fast-paced market of the previous couple of years was unsustainable, and as with all booms, they are inevitably followed by a period of market correction. During these previous times, many would-be home movers were unable to move as they simply couldn’t compete with the frenetic bidding wars of immediately proceedable buyers.
Today’s market moves at a more civilised pace compared to those times, allowing local home owners time to look around and plan their next move without the fear of losing out.
Here are a selection of our first-time buyer homes that are currently available –
Station Road, New Barnet – Price £500,000
Princess Park Manor, Royal Drive – Price £499,950
Rossetti House, Coleridge Way – Price £469,000
Alston Road, High Barnet – Price £399,950
Collison Avenue, Barnet – Price £495,000
Looking for a new home this spring?
If you are thinking of buying, selling or letting a property, we are happy to offer specific advice and help you plan for your next move.
Please don’t hesitate to call me.
Thank you for reading
Nick Statons – Owner Statons Estate Agents
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