> Sales Market Comment Winter 2024 | Plaza Estates London
Sales Market Comment Winter 2024
By Eitan Fox
// Thu 18th
A new year is a time to take stock. After a challenging but not disastrous 2023 for London’s prime central property market, the question is what is next?
To answer that we need to consider the major influences on 2023 which will contribute in shaping the coming year.
There was definitely a price reduction in 2023 but not necessarily to the levels that some doom mongers forecast. There developed a stand-off between buyer and vendor which resulted in lower than expected sales transactions throughout the first 8 months of last year.
The scepticism of the market was driven by rising interest rates through 2022/2023, the raging war between the Ukraine and Russia, high inflation and increase in living costs including fuel and food.
However, the last 4 months of 2023 provided good data with interest rates flattening out and being put on hold which resulted in a substantial increase in transactions and the market rallying.
We also saw a shift in attitude from both buyer and seller. Many vendors finally waking up to the fact that they needed to correct their price expectation. Buyers rather than looking to finance transactions via mortgage loans, were instead paying solely by cash. The anticipation of projected interest rates coming down in 2024, many buyers are looking to refinance and release equity when more favourable interest rates become available.
In 2024 we have already seen fixed mortgage rates come down based on loan to value. All of this has been made possible because inflation has come down in keeping with Government targets.
Later in the year there will be a General Election. This is something we will look more closely at in our Spring Newsletter.
So what can we predict for the Prime Central London market in 2024? We have not seen price growth in a number of years and the likelihood is that we will have to wait for this trend to change in 2025.
However, it is probably better to get your business done now whilst the underbelly of the market is still soft and good value can be found.
Vendors will need to remain realistic with their asking prices and at Plaza Estates we will be able to provide great guidance on the best way to achieve the highest possible price in the most efficient time frame whilst the market remains transitional. Using our experience, local market knowledge and enviable contacts over the last 52 years, will provide the best results for all our clients.
Buyers from abroad should remember the pound remains weak compared to its historic levels and overseas buyers should take advantage of this and transact whilst the currency rate remains stable but below its historic value.
In concluding there is much to be optimistic about for the coming year and let’s hope peace and harmony can be found allowing us all to thrive and enjoy the many amazing opportunities that we have.