Making predictions may seem a little crazy after the 3 years of uncertainty we’ve all faced, so we’ve let the fact that it is now ‘2023’ sink in before voicing our predictions for the year ahead. We are excited to see what 2023 has in store for us, maybe we’ll look back this time next year and think we made it through another tough year or we’ll be here to say that was a jolly good one wasn’t it! We’re hoping for the latter!
Despite what the national news spewed out about the property market in 2022, the year finished on a high for us, with 2023 starting as we mean to go on – with lots of houses sold! So here we are, nearly a month into the new year and we’re going to take a look at some predictions from James Wyatt, our Director, for what he believes is in store for us this year so that we can check back next January to see how well they turned out.
Remember, if you’re thinking of moving to the area this year, take some time to browse our Properties to buy in Wentworth Estate and the surrounding areas. If you have any questions, you can also visit our award-winning website or call us on 01344 843000 and email us.
What does James think of the press coverage on predicted property prices and what does he predict for property prices?
You’ll have seen for a good chunk of 2022 that the press coverage has been huge on mortgage interest rates, the cost of living, and 2023 predictions from experts on the housing market have been overwhelmingly miserable with ‘experts’ stating that property price falls are expected to be of anywhere between 2% and 20% this year. It’s all guesswork of course, expert or not, if you’re currently buying or selling a home you’ll know that there is still a huge demand for property, and many ways around financing a move if you’re serious about it.
James says “There are too many unknown factors to predict such huge changes to property price over the coming months and many ways for us all to adapt to our surroundings for it to have a significant impact on the market. Keep in mind that sparking fear amongst the masses is a cheap way to gaining cheap media coverage! Frustrating for all of us to see, and to witness the stress it causes to our clients, when really things are just getting back to what should be seen as the norm after the peak in prices during the pandemic”.
What does James predict for mortgages this year?
James predicts that 2023 will see falling demand for mortgages by up to 20%, already leading to a price war amongst lenders, with lower rates now following and more products coming back. Fixed rates have been reducing weekly for over 2 months now since the Truss/Kwarteng Budget shock, and we should expect to see this continue. Anyone on a standard variable rate should still consider a switch to a variable or fixed-rate deal, which could be considerably cheaper as the average standard variable rate continues to climb.
Although we’ve seen consistent Bank of England Rate rises, 9 consecutive rises so far, the last rise may be coming in the announcement next week, and we are with the masses that are now saying that the February rate adjustment, or possibly March, will signal the top of the interest rate cycle, with falls to come later on in the year, and into 2024, and then levelling off better than predicted last year.
So, what does James predict about affordability?
While many will still see an increase to their mortgage payments over the next few months, and as we all continue to have one eye on the huge energy costs we are paying, the wider picture needs to be looked at as wage growth is running at its highest level since records began. So, keeping an eye on every day costs will be key while not panicking about affordability going forward, as inflation and energy costs have peaked and are now decreasing while wages are increasing.
While we may not have seen lower energy bills yet, supplier contracts for energy bought in advance are starting to run out and the lower cost is likely to start trickling down to us in the summer. The price of gas was peaking at over 600p per therm last summer and is now under 140p per therm, it is still three times higher than average prices before the energy crisis started in 2021, so while it is not cheap it is less expensive than it was last year.
As travel and restrictions are lifting, especially in China, we should see that the overall picture of the economy is improving and despite living standards feeling like they are being squeezed at the moment, there is hope and confidence out there.
And finally, what does James predict about the local property market?
The housing market in the South East and London is highly unlikely to ‘tank’. This is a prediction James makes based on research and our expertise in the industry. We see no reason for house prices to fall at all. It’s nearing the end of January, so our predictions are a month after all the other ‘experts’ – sometimes it pays not to be too hasty! So, while we continue to be very busy here in the office and it is business as usual for us, we urge you to keep calm, and carry on! If you need us, pop in, or give us a call.
Predicting some great homes that could be yours this spring
And with that in mind take a browse of our website for the latest Properties to buy in Wentworth Estate and the surrounding areas. Be sure to contact our office for viewings or more information on these properties. James predicts they won’t be around for long!
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If you are thinking of moving to the area or buying a property to rent, make sure you take a look at our amazing catalogue of properties for sale in Virginia Water and the surrounding areas.
If you’d like to speak to someone about properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram, and LinkedIn.
