Comfort Estates Q2 Market Report | 2024

As the first half of the year draws to a close, we've pulled together some of the top industry reports to bring you our overview of the market as it stands at the end of June 2024.

In Q2, the property market showed stability and resilience. New listings remained steady, comparable to the strong supply in Q1, largely driven by robust activity in April and May. However, June saw a slight decline compared to the previous three years, likely due to sellers' cautious approach ahead of the base rate review and the general election.

Buyer demand remained strong, with properties sold subject to contract showing both annual and quarterly growth. This indicates an improved consumer outlook despite high interest rates and borrowing costs. The number of price reductions increased significantly, surpassing levels from the same quarter in previous years. This suggests heightened price sensitivity among buyers, prompting more frequent price adjustments by sellers.

Fall-throughs rose both quarterly and annually, influenced by mortgage rate volatility and the rapid turnover of available mortgage products. Withdrawals stayed stable, with 36% of withdrawn listings being reduced before removal, indicating that initial pricing strategies may have been overly optimistic.

Regionally, the South West, East, and South East led in sales-to-total-property ratios, while Greater London had the lowest. This disparity highlights varying demand dynamics across the UK, with stronger buyer interest in certain regions. Of the 10 regions reported on by Spectre, the East Midlands sits at the fourth strongest.

Looking ahead to Q3 2024, forecasts suggest a robust supply outlook and continued sales growth. New listings are predicted to grow by 1% from Q2, and sales are expected to increase by 6.5% from Q2, with a 23% annual rise. A more stable mortgage rate environment and potential base rate cuts could further stimulate the market.

Overall, while the market faces challenges like high borrowing costs and economic uncertainty, effective marketing and realistic pricing strategies are crucial. Sellers need to be responsive to market conditions to attract buyers in a competitive environment with abundant options. Regional variations underscore the importance of tailored strategies to address specific local market conditions.