Buyer Demand Reaches a Four-Year High, Signalling a Robust Spring Market

As the flowers bloom and the days lengthen, the property market in Rugby, along with the rest of the UK, is experiencing a significant uplift, commonly referred to as the spring bounce. The latest findings from the Royal Institution of Chartered Surveyors (RICS) in their UK Residential Survey for March 2024 confirm this seasonal trend, providing a hopeful outlook for both estate agents and home buyers in the Rugby area.

March 2024 has been marked by a notable increase in buyer demand, the most pronounced since February 2022. The RICS report details a net balance of +8% of survey respondents observing a rise in new buyer enquiries. This resurgence of interest in the housing market is a critical indicator of its health and vibrancy, signalling robust activity that potential homeowners should consider.

Simultaneously, the supply of new listings on the market has continued its upward trajectory for the fourth consecutive month. This is evidenced by a +13% net balance of respondents noting an increase in new instructions to sell. Estate agents, including those at Ellis Brooke, have been conducting more property appraisals, which is expected to enhance the number of listings available to prospective buyers in the coming weeks and months.

Looking forward, the sentiment within the property market remains optimistic. Survey respondents anticipate further improvements, with sales volumes expected to increase over the next three months, underscored by a rise from +6% to +13% in net balance predictions. Over a twelve-month horizon, expectations are even more positive, with a remarkable +46% of respondents foreseeing heightened sales activity.

The trajectory of house prices also reflects a growing stability, with less negative sentiment observed over the past seven months. From a steep -67% net balance in September 2023, the view on house prices has adjusted to a near-neutral -4% in March 2024. This suggests a stabilisation in house prices, offering a more predictable market for potential buyers.

Senior economist for RICS, Tarrant Parsons, highlights that the recovery in demand is being supported by a slightly easing inflation environment, fostering hopes that the Bank of England might lower interest rates later in the year. However, he notes that while the outlook is improving, the acceleration in market activity may be tempered by still-high mortgage rates compared to the lows of 2020/21.

For home buyers in Rugby, these developments in the property market suggest a timely opportunity to consider entering the market. The combination of increasing buyer demand, a steady inflow of new listings, and stabilising house prices creates favourable conditions for purchasing a home. Ellis Brooke estate agents are ideally positioned to assist buyers in navigating this dynamic landscape, offering expert guidance and a comprehensive portfolio of properties that cater to a range of preferences and budgets.

The property market in Rugby is set to benefit from the spring 2024 bounce, making it an opportune moment for prospective homeowners to explore their options and potentially secure a property in this promising market.