Embracing Optimism: Nicol & Co’s Insights on the Resurgent Housing Market in 2024
The housing market in 2024 is poised for a “return to a new normal,” as the dynamics shift in favour of both buyers and sellers.
Our Managing Director, Matt Nicol, provided key insights into the current state of the housing market, highlighting the positive indicators that signal a more favourable environment for both buyers and sellers.
Matt, emphasised the significance of five-year SWAP rates as a reliable gauge for changes in mortgage costs. Notably, these rates have reached their lowest levels since May of the previous year, responding positively to the consistent decisions by the Bank of England to maintain the base rate at 5.25%. This development has laid a foundation for more affordable mortgage options and increased market stability.
Addressing the impact of inflation, Matt pointed out the substantial decrease in inflation rates, fostering optimism for interest rates in the upcoming year. Reflecting on the previous year in our latest market update, Matt remarked, “Our experience in 2023 may sound clichéd, but it was certainly a game of two halves, with the second half seeing the market responding and behaving in line with averages seen pre-Covid.”
In discussing the outlook for 2024, Matt expressed confidence in a positive shift, stating, “Interest rates, through mortgage affordability, are a key determinant for the residential market outlook. Both SWAP rates and the recently announced sharp drop in inflation are now backing up the sense that interest rates have peaked, so we are looking forward to 2024 with a degree of optimism.”
Anticipating improvements in sentiment by spring 2024, Matt highlighted the favourable conditions for buyers. With an increasing supply of properties on the market and more affordable mortgage solutions becoming available, the year ahead promises a return to a ‘new normal.’
As we embrace the positive shifts in the housing market, Nicol & Co remains committed to providing valuable insights and expert guidance to clients navigating the dynamic property landscape in 2024.
For more market updates and the latest property news, visit the news section on our website at www.nicolandco.co.uk/news/.