State of your local property market: January 2024
January is often associated with post-holiday blues and the notorious "Blue Monday," but the West Sussex property market has painted a different picture of resilience and positivity. Despite the month's gloomy reputation, the activity shown throughout the local property market has proven to be a beacon of hope.
In a surprising twist, January has brought robust activity to the property market, with sales and lettings showing unwavering strength. This unexpected buoyancy challenges the conventional narrative and begs us to explore the factors that have contributed to this positive trend. It also offers a glimpse of what the future may hold for Angmering, East Preston and Rustington.
The current landscape
We asked Jason Orion, East Preston Branch Manager & Property Valuation Expert, at Cooper Adams to hear how he has found the start of 2024 so far:
“There are some key observations that have presented themselves in the market throughout January - positive signs of stabilisation, ease of mortgage lending with improved lower mortgage rates which has stimulated the first buyers to buy, therefore improving the chain of property buying. This has also given sellers more confidence in selling and proceeding to market their homes.
Over in Rustington, Branch Manager & Property Valuation Expert James McGillivray, shares his opinion:
“We have seen an increase in properties coming to market over the month however there is still a lack of buyers, particularly first time buyers so the market is still quite tough. Having said this, mortgage rates are continuing to drop, and I believe we’ll start to see an increase in buyers soon”.
In a recent article, a popular property portal shared their data which highlighted that the demand at the end of the first week of January was more than 10% ahead of the same period a year ago, along with other signs that indicate buyers are indeed returning to the market.
A key dictator of market changes is mortgage rates, particularly if rates continue to drop this will to influence buyer-seller dynamics. We hope that there will be further news of lower mortgage rates because this is expected to increase buyer demand in the upcoming months. Buyers will have more bargaining power with sellers, but many will still need to sell their current property before making their next move. As for sellers, it's crucial to set realistic expectations for the property's value and be open to negotiation on pricing.
Try our free online valuation tool to get you started.
Mortgage rates
In the last week, lenders found themselves in a precarious position. Reports show conflicting rate trends, with some offering their most competitive rates in months, while others struggle to keep up with swap rate changes. Despite these challenges, the overall outlook remains positive. Average rates are still on the decline, with further reductions in this week's data and more expected to come. As a result, individuals seeking a mortgage in the near future can expect to find more attractive deals than those offered six months ago at their peak.
As of Friday 26th January 2024, the current average mortgage rates are shown below:
Rental market review
We caught up with Sam Dunnings, Head of Lettings at Cooper Adams to hear how 2024 has started in the lettings side of business:
“RECORD January for lets!
For the past 20 years or so January has always been a quiet period, not in 2024! We have seen a record number of happy tenants moving to their new home. Demand is still high with little available in BN16. If you are thinking of letting in 2024, please get in touch!”
2024 landlords need to keep their eye on the news this year - there are a number of anticipated noteworthy developments on the horizon, including the review of the Renters Reform Bill. Did you see the latest update on 22nd January concerning the Right to Rent code of practice? Our aim is always to help and guide you to make the best decision for you and your future and that includes keeping you informed of changes to legislation and ensuring you remain compliant.
We have created a valuable, free downloadable guide for landlords that we recommend you keep close to hand to help you navigate the rental market.
Tenants can also take full advantage of our new and improved affordability calculator to kick 2024 off in the best way possible - moving into your dream rental with a budget and a plan!
If you have any questions and are thinking of either letting a property out, or if you are looking to rent a property, our team is ready to help get you moving.
The road ahead
The West Sussex property market has exhibited a positive performance in January. The combination of robust sales and lettings activity, coupled with favourable mortgage rates, paint a promising picture if this continues. However, the market's trajectory will depend on various factors, including economic conditions and shifting buyer preferences. As we navigate the months ahead, as always we encourage staying informed and adaptable will be key for anyone involved in the West Sussex property market.