As a seasoned estate agent serving the Portsmouth community, I’ve always prided myself on offering transparent, informed advice to local homeowners. Today, I’d like to provide a balanced perspective on the current housing market trends and what they could mean for those contemplating selling their Portsmouth homes.
The housing market is an ever-evolving landscape, and recent forecasts present a mixed bag of predictions that Portsmouth homeowners should consider before placing their ‘For Sale’ signs in their front gardens. According to the latest data, while the property market shows signs of recovery, it may be prudent for some sellers to exercise patience.
Current British Market Dynamics
As of the beginning of 2024, the UK property market has shown resilience against predicted downturns. Contrary to forecasts of declining house prices in early 2023, the British market experienced a modest rise. This unexpected stability can be attributed to several critical factors, including effective mortgage affordability stress testing since 2014, lender policies supporting households, and the robustness of the employment sector, all of which have cushioned the property market from significant drops.
Despite predictions of an 8-15% fall in house prices at the start of 2023, data from sources like Halifax indicated a national increase of 1.7% in 2023. This trend challenges the conventional scare scenarios often associated with market volatility.
As we look towards 2024, the market is expected to stabilise further. Some projections indicate a possible decrease in national house prices of 2% to 4%, yet others suggest a slight increase over the next 12 months. These numbers represent a market that, while not booming, is maintaining a steady pulse. Furthermore, with Bank of England interest rates potentially drifting to around 3.75% to 4% by the end of 2024 (subject to inflation), the climate is ripe for strategic decision-making.
Portsmouth’s Position
In Portsmouth, the local housing market mirrors this national trend. The city’s rich history, excellent transport links, schools, and community spirit make it a continued area of interest for buyers. However, the anticipated continued market stability suggests that homeowners might benefit from waiting unless there’s a need to sell.
That said, life’s milestones — marriages, births, deaths, and career moves — continue to drive the need for housing transitions. Portsmouth’s market, known for its resilience, is no exception. As such, homeowners looking to sell due to life changes will find an audience in Portsmouth’s steady, albeit slower, marketplace (compared to the manic years of 2020/21/22).
A Strategic Approach to Selling Your Portsmouth Home
For those in Portsmouth considering a sale, it’s crucial to understand the current market’s nuances. Interest rates, while stabilising, still impact the average mortgage rates, affecting buyers’ purchasing power. This could influence the pricing strategy for your Portsmouth home.
Most of the property sales in Portsmouth during the last 12 months were terraced properties, selling for an average price of £288,900. Flats sold for an average of £200,000, with semi-detached properties fetching £398,900.
However, what a property sells for, in most instances, is almost irrelevant because if yours goes up, the one you want to buy goes up (and vice versa). The most important thing is your chances of selling and moving home.
In 2022, your chance of selling your Portsmouth home was 68.9%, whilst in 2023, it had dropped to 51.1%
It is interesting to compare it with the national picture of 65.38% in 2022 and 52.85% in 2023.
As with all things, it’s a matter of supply and demand, especially supply. This can be measured by the number of properties currently on the market.
On the 1st of January 2023, there were 1,311 properties for sale in the Portsmouth area. That had increased to 1,528 on the 1st of January 2024
(Portsmouth area PO1 to PO6).
Moreover, nearly half of homeowners with fixed-rate mortgages will soon face higher payments upon re-mortgaging, putting added pressure on the market. As your local expert, I can help navigate these complexities to position your Portsmouth home attractively in the market.
The Case for Putting Your Portsmouth Home on the Market
While the market might lean towards waiting, there are strategic reasons to list your home. A well-presented property, priced accurately, stands out in any market. Portsmouth’s unique appeal can work in favour of sellers with desirable properties.
For those looking to downsize, the current market could be particularly advantageous. The increased costs of borrowing might deter upsizers, but for downsizers, especially those who are mortgage-free, there is a potential for a beneficial sale.
Why Consider a Free Valuation Market Appraisal of Your Home?
A free valuation market appraisal serves as a cornerstone for any selling strategy. Even if you are months and months away from considering moving, it provides a realistic picture of what your Portsmouth property could command in the current climate. And remember, it’s about more than just attaching a price tag to your property; it’s also about understanding your home within the fabric of Portsmouth’s property market.
Portsmouth Property Expertise That Matters
In these uncertain times, expertise and knowledge are invaluable. A thorough understanding of the macroeconomic national (and international) climate and the microcosm of Portsmouth’s property landscape can make all the difference. As your local estate agent, I have the insight and experience to guide you through these decisions.
Whether to sell your home in Portsmouth in 2024 is not a decision to be taken lightly. The market offers opportunities but must be navigated with care and expertise. For those considering their options, I invite you to reach out for a comprehensive free valuation market appraisal. Together, we can assess your property’s potential and make an informed decision that aligns with your goals and the market’s realities.
Remember, whether it’s to sell now or later, the key is preparation and partnering with someone who understands the market’s pulse. As a Portsmouth estate agent committed to your best interests, I am here to offer that partnership and ensure that you do so with confidence and clarity when you decide to sell.
