Recent data from Chestertons, a London estate agency, reveals a 15% decline in new buyers entering the market in June due to higher mortgage costs and persistent inflation. Nevertheless, committed buyers persist as viewings with them increased by 19% compared to the same month last year.Â
To expedite sales, sellers opted to lower initial asking prices, with a 35% rise in such decisions compared to June 2022. Matt Thompson, head of sales, notes that while many buyers remain eager to move, rising interest rates have prompted caution, leading some to reassess their finances and adopt a more conservative budget.
Although the recent decrease in new buyers may have slowed the market, Chestertons predicts a resurgence as buyers adapt their preferences and lenders introduce more products. As the weeks progress, buyers can anticipate a broader range of properties, with Chestertons’ branches recording a 9% increase in properties listed for sale in June compared to the previous year.
In response to shifting economic conditions, buyers are expected to reevaluate their criteria and financial plans, making well-informed decisions in the property market. Those resuming their search in the upcoming weeks will benefit from a broader range of available properties.
While the real estate sector encounters challenges due to fluctuating interest rates impacting buyer behavior, Chestertons maintains a positive outlook for the future. The agency foresees increased market activity as buyers adapt to the current conditions, and lenders introduce more appealing products to facilitate property transactions.
​​In the midst of these fluctuations, sellers have taken proactive measures to lower asking prices, aiming to attract potential buyers and expedite the selling process. This adaptive pricing strategy reflects sellers’ determination to overcome market challenges and successfully complete transactions.
Matt Thompson’s insights underscore the significance of buyer caution amid the current economic climate. By carefully assessing their financial situations and adopting more conservative budgets, buyers can make informed decisions in their property search, increasing the likelihood of securing their desired homes when market conditions align with their needs.
As the property market continues to evolve, Chestertons remains steadfast in providing support to both buyers and sellers, helping them navigate the ever-changing landscape. The agency’s expertise and extensive property listings enable them to assist clients in achieving their real estate objectives amidst the dynamic market environment.
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