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Property expert explains house prices could continue to fall as sales hit 12 year low | Personal Finance | Finance
As interest rates continues to rise, sellers and estate agents are forced to lower their property prices in a bid to get more people to complete the purchase of the sale.
Around 1million property sales are said to be completed in 2023 which is the lowest since 2012. On top of this house sales are 21 percent lower than in 2022, new data Zoopla has found.
Jackie Quinn, estate agent in Ashtead and Southeast regional executive at Propertymark explained the property market has been changing since the pandemic.
On BBC’s Wake Up to Money, the property expert explained the change in the market is regional as many people in London, or central areas are selling up their expensive properties to find somewhere bigger in the suburbs.
She said: “The market has changed. We are dropping some of our properties now by even 10 percent.
“I think the transaction numbers will pick up around Autumn, I don’t think prices will increase, I think they will steady or maybe drop a bit more in suburban areas.
Zoopla’s latest research suggests average UK house prices are up just 0.1 percent this month to £265,100. This is the lowest annual growth rate for more than 12 years. In comparison, annual price growth this time last year was 9.6 percent.
It comes as the latest Nationwide House Price Index for July showed house prices are falling at their fastest rate since 2009.
Zoopla said the expected 21 percent decline in property sales by the end of 2023 was largely due to a fall in buyers with mortgages. They expect the number of mortgaged sales to drop 28 percent to last year.
Ms Quinn continued: “This is affecting first-time buyers because the affordability is low and therefore other properties are not coming into the market which has a knock-on effect on the rest of the market.
“We are seeing some sales fall through because mortgage products or repayments on a monthly basis are going up four or five times than what was expected when rates are lower.”
The property expert explained the rise in interest rates has seen some people downsize their homes for something more affordable, or even surprisingly they are selling up to move into rented accommodation.
Zreen Mansha CEO and founder of Travel Scotland explained prices for properties are dropping in Manchester, but rent is going up.
She said: “We are very much in the middle of a housing crisis which needs to be acknowledged.
“More people struggling to remain in a home, never mind own a home – this needs to be addressed. It will be interesting to see the consequences of this in a year’s time.”
The Bank of England has raised interest rates 14 times in a row as it battles to bring down inflation and has warned they are likely to remain high for some time.
Richard Donnell, Zoopla executive director said: “The housing market continues to feel the impact of higher mortgage rates and cost of living pressures. It’s resulting in weaker demand from buyers, fewer sales and very low house price growth.”
Matt Thompson, head of sales at London-based estate agent Chestertons, said buyers had been more cautious and in some cases were delaying purchases.
He added: “However, there still are buyers who have already locked in a mortgage rate with their lender and are keen to secure a property before the rate expires.”
Episodes of Wake Up to Money are available on BBC iPlayer.
Mumbai:
The Indian equity benchmark indices opened higher on Friday amid positive global cues, as buying was seen in the IT, pharma and auto sectors in the early trade.
At around 9.27 am, Sensex was trading 265.3 points or 0.33 per cent up at 80,066.81 while the Nifty added 89.85 points or 0.37 per cent at 24,336.55.
Nifty Bank was down 222.85 points or 0.40 per cent at 54,978.55. The Nifty Midcap 100 index was trading at 54,980.80 after increasing 10.95 points or 0.02 per cent. Nifty Smallcap 100 index was at 16,903.30 after declining 60.20 points or 0.35 per cent.
According to market watchers, “after a positive opening, Nifty can find support at 24,200 followed by 24,100 and 24,000. On the higher side, 24,500 can be an immediate resistance, followed by 24,600 and 24,700.
“The charts of Bank Nifty indicate that it may get support at 55,000 followed by 54,700 and 54,500. If the index advances further, 55,500 would be the initial key resistance, followed by 55,800 and 56,200,” said Hardik Matalia, Derivative Analyst of Choice Broking.
Meanwhile, in the Sensex pack, TCS, Tata Steel, Maruti Suzuki, Eternal, ICICI Bank, SBI, HDFC Bank, Infosys, M&M and Tata Motors were the top gainers. Whereas, Axis Bank, Tech Mahindra, Nestle India and IndusInd Bank were the top losers.
In the last trading session, Dow Jones in the US added 1.23 per cent to close at 40,093.40. The S&P 500 climbed 2.03 per cent to 5,484.77 and the Nasdaq added 2.74 per cent to close at 17,166.04.
In the Asian markets, Jakarta, Bangkok, Seoul, Hong Kong, China and Japan were trading in green.
According to analysts, US markets extended their rally on Thursday as investors snapped up hard-hit technology stocks, helping boost the S&P 500 out of correction territory.
The foreign institutional investors (FIIs) bought equities worth Rs 8,250.53 crore on April 24. However, domestic institutional investors (DIIs) sold equities of Rs 534.54 crore on the same day.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Mumbai:
Indian equity markets are trading in the red as tensions soar between India and Pakistan over the Pahalgam terror attack in Kashmir. Sensex, the 30-share BSE benchmark, has crashed over 1,000 points and is now trading below the 79,000-mark. Nifty, the NSE index of 50 shares, fell below 24,000 points.
The markets went up in early trade, driven by a global rally and fund inflows, but the momentum got lost thereafter, and it gave up the initial gains.
The markets are also upset by unimpressive March quarter earnings by Axis Bank, the third-largest private sector bank of the country. The bank’s shares have fallen 4.65% after reporting a decline in quarterly profit from Rs 7,130 crore in the year-ago period to Rs 7,117 crore.
Besides Axis Bank, major laggards include Bajaj Finance, Bajaj Finserv, Tata Motors, and Tech Mahindra. On the gaining side are TCS, Infosys, Reliance, HCL Tech, HDFC Bank, and ICICI Bank.
At least 26 civilians were massacred by terrorists in a tourist hotspot known as ‘Mini Switzerland’, leading to both countries pulling out their diplomatic staff and suspending visas issued to the other nation’s citizens. (Follow live updates here)
The latest flare-up at the Line of Control was speculative firing by Pakistani troops, which is being seen as an attempt to provoke the Indian side. Indian troops retaliated effectively against the firing from multiple Pakistani posts.
As Indian equities braced for the impact, global equities, including the Asian markets, were charting in the positive territory. South Korea’s Kospi index, Tokyo’s Nikkei 225, Hong Kong’s Hang Seng, and Shanghai SSE Composite were all in green.
Similar trends were seen in US equities, too. Last evening, Nasdaq Composite closed 2.74 per cent higher. S&P 500 jumped over 2 per cent and Dow Jones Industrial Average surged 1.23 per cent.
Mumbai:
Equity benchmark indices Sensex and Nifty declined in early trade on Thursday amid profit-taking after a seven-day rally and muted trend in Asian markets.
The 30-share BSE benchmark declined 242.01 points to 79,874.48 in early trade. The NSE Nifty went down by 72.3 points to 24,256.65.
In the past seven trading days, the BSE benchmark gauge zoomed 6,269.34 points or 8.48 per cent and the Nifty jumped 1,929.8 points or 8.61 per cent.
From the Sensex firms, Eternal, Bharti Airtel, ICICI Bank, Mahindra & Mahindra, HCL Technologies, Reliance Industries, and HDFC Bank were among the laggards.
IndusInd Bank, Tech Mahindra, Nestle, Bajaj Finance, Axis Bank, and Tata Motors were among the gainers.
In Asian markets, South Korea’s Kospi index, Shanghai SSE Composite, and Hong Kong’s Hang Seng were trading lower while Tokyo’s Nikkei 225 quoted in the positive territory.
US markets ended sharply higher on Wednesday. Nasdaq Composite jumped 2.50 per cent, S&P 500 surged 1.67 per cent and Dow Jones Industrial Average climbed 1.07 per cent.
Global oil benchmark Brent crude climbed 0.12 per cent to USD 66.20 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 3,332.93 crore on Wednesday, according to exchange data.
The BSE benchmark jumped 520.90 points or 0.65 per cent to settle at 80,116.49, the highest closing level since December 18, on Wednesday. The Nifty rallied 161.70 points or 0.67 per cent to 24,328.95.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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