Spring is Around the Corner!
With Spring around the corner there are early signs of life in the housing market! As the Snowdrops and Daffodils have started to show signs of life throughout our beautiful countryside so too is the housing market showing significant signs of improved buyer activity. As the owner of a Welsh Property we thought you might be interested to read about what has been happening in the market locally and how the housing market is fairing after a period of extended uncertainty. The Bank of England’s recent decision to lower the base interest rate to 4.5% has significant implications for the Welsh property market. While the move would typically be positive for the prime Welsh property market we have to consider the broader economic pressures and give careful consideration to the combined impact on the housing market. The rate reduction, while intended to stimulate economic activity, presents a nuanced picture for those looking to purchase properties. On the one hand, lower borrowing costs could make financing larger mortgages more attractive, potentially increasing demand across market. This could, in turn, support property values in sought-after areas of Wales known for their exclusivity and natural beauty. However, it is crucial to remember that fixed mortgage rates, which are often preferred by borrowers, haven’t necessarily followed the base rate downwards. In fact, they’ve been trending upwards. This means that while the Bank of England’s move suggests a desire to ease financial conditions, the actual cost of borrowing for a property might not decrease proportionally Experts predict a potential rise in inflation later this year, which could influence future Bank of England policy, however many experts are predicting as many as three or four more cuts this year, with some expecting the base rate to be around 3.5% this time next year. While the recent rate cut may be beneficial in the short term, the long-term economic outlook remains subject to change and higher levels of inflation may erode the positive impact of any cuts we see this year. Locally we have had to contend with changes to council tax and whatever your political opinion on second home ownership it has undoubtedly impacted house prices in regions where councils have introduced council tax premiums, with the Principality Building Society reporting a drop in average house prices in Gwynedd of over 12% while Pembrokeshire has seen a fall of 8.9%. While Carmarthenshire has seen a increase last year of 9.2%, the local council has now decided to introduce a premium of 100% on council tax for second homes from April this year, an increase from the 50% premium currently applied. Second home owners who have marketed their properties for sale over the last twelve months have avoided this premium, but as the twelve month grace period comes to an end this year it will be certain to continue to impact the markets locally. Despite all this the number of sales across Wales were up 28% year on year, showing a clear message of consumer confidence despite the obvious challenges and giving hope that the market will continue to strengthen throughout 2025 and homeowners looking to move will be able to find buyers. There has also been a positive start to 2025. With an increase in buyer activity reported widely and a stability in fixed mortgage rates helping to maintain affordability there is reason to be cheerful and despite the increase of new listings (Rightmove has reported an increase of 11% compared to the same period last year) there is every reason to feel optimistic about selling in 2025. However, with an increase in competition with more homes on the market, in order to achieve the best price for your home in 2025 you and your agents will need to consider your strategies carefully and ensure they have robust processes designed to leverage the best offers from buyers. Your marketing price will need to be considered carefully, to ensure it is attractive enough to entice buyers, while still allowing room for negotiations, demonstrating a clear understanding that the market continues to be sensitive to local, national and global economic conditions and the impact that has on your potential buyers. Your agent will need to work harder to ensure your property presentation is the best it can be, using perfect professional photography and video to grab buyers attention and entice them to view, combined with clever carefully crafted strategies and processes to leverage the very best offers. If you have been thinking about selling in 2025 and would like to talk to us about how we can improve your chances of finding a buyer and achieving a great price then get in touch and we will gladly pop along for a chat to answer any questions and talk you through our strategies and processes that have helped other homeowners looking who were selling homes like yours. How to make sure you sell in 2025 With an improving market 2025 is likely to offer a great opportunity to anyone who has been trying to sell in 2024, but with average house prices still 3.1% down on the peak in 2022 despite a rise of 2.5% in Q3 of 2024 there are still likely to be challenges. With more properties on the market for sale now than at any point in the last few years there is certainly likely to be continued competition meaning homeowners wanting to sell for a premium need to make sure there property stands out and that their agent is doing all they can to promote their property widely. We have developed a comprehensive social media strategy that compliments our more conventional marketing through Rightmove, Zoopla and OnTheMarket and helps us to reach literally hundreds of thousands of potential buyers every month. By promoting our clients properties to a wider passive market in addition to those actively searching the portals we are able to give them the best chance possible of achieving a sale at the best possible price. On Facebook alone our clients properties