Rates rises quash spring price bounce, but activity holds up!

According to a Rightmove press release on 19 June, new seller asking prices fell by a minimal amount in May, and this was the first drop in asking prices since 2017.

Rightmove have predicted that overall new asking prices will fall by 2% on average by the end of 2023.

It is interesting that they report activity still holding up with buyer demand up by 6% compared with the same period in 2019.

The local market in Cornwall remains reasonably active, albeit lower than the hectic Covid years of 2020 and 2021.

In May 2020, restrictions surrounding the property market were eased and this was the start of what became an unprecedented level of activity locally.  Our surveyors at DowlingDodd have many years’ experience in the Cornish property market and Julian Crosby who began his professional career in 1979 recalled 2020 and 2021 as the busiest time ever.

Many of the local agents are reporting that we have now returned to a more normal market, and this is our feeling to.

Vendors are now having to accept that an asking price is just that and need to be willing to negotiate with a buyer rather that become involved in a bidding war, but the right property, correctly priced, in in most cases is generating interest, achieving viewings and offers are forthcoming.

Clearly the current economic climate with high inflation, rising interest rates and the cost-of-living crisis is affecting the market.  Uncertainty is starting to creep back in, and we suspect that some potential vendors will sit tight and postpone any move until there is an indication that interest rates stabilise.

One particularly interesting statistic looking back over the years is that so far this year the number of surveys and valuations we have carried out is very much in line with the numbers in 2019 when the Base Rate was 0.75% in June, whereas at the time of writing it is 4.5% with predicted further rises to come.

For those buying with a mortgage, the cost of your mortgage is clearly going to much higher than in previous years and whilst this can be quantified and can be budgeted for, the unknown as always is what you may have to spend on the property once you have bought it.

This means that it is now even more important that you buy with your eyes wide open and make sure you get a survey beforehand so that you don’t find too late that there are repairs needed which you hadn’t allowed for.

By getting DowlingDodd to carry out either a HomeSurvey or a Building Survey whether you are buying your first home, a new family home or and investment property, you can be assured that our surveyors will provide you with a detailed, comprehensive report on the condition of your new home enabling you to take into account any works that may be needed, or we can give you assurance that the property is in good condition and there won’t be any problems once you move in.

We are probably the most experienced team of surveyor in the area with wide ranging local knowledge to help you through the purchase process.

Call 01872 260555 or email surveyors@dolwingdodd.co.uk to find out more.

Published 30 June 2023

Written by: Julian Crosby FRICS MRPSA