With 65% more properties on the market demand remains strong and sales of homes are 11% higher than 2019.

Sales of homes are +11% higher than 2019 backed by strong demand as the number of properties for sale increases +65%, according to Zoopla.

Demand for homes has reached the highest level since October 2022 which was reduced after the mini budget and is +16% higher than this time in 2019.

For first time buyers the rise in the number of properties on the market is a positive change offering more choice for buyers in the most affordable areas.

Property sales are rising

The number of properties sold subject to contract are 11% higher than 2019 and an indication the market is in a better shape than expected.

Even though it remains -16% lower than last year it has benefitted from the +65% rise in supply of new homes compared to the chronic shortage last year.

Zoopla expects 500,000 sales to complete in the first half of 2023 as buyers look for better value homes in more affordable areas of Scotland, Wales, the North East and London.

There is less demand in regions where house prices increased significantly during the pandemic as home movers relocated to find properties with more space to work from home.

The property market is more balanced now than in the past three years as working from home 1-2 days a week is typical for many office-based employees.

Home buyers can look ahead with more certainty about the type of home they can buy and look for value for money in their property purchase.

This is especially the case as mortgage rates are 2 times higher than at the start of 2022 although buyers can benefit with house prices expected to fall 5% this year.

Many aged over 50 retired due to the pandemic and with cost-of-living pressures have traded down larger properties to reduce costs adding more homes on the market.

Lower price bands driving sales

Mortgage rates are at 4% which means 20% less buying power when purchasing a property and home buyers are looking for better value, shifting the price bands with the most sales.

House prices do not need to fall significantly to compensate as buyers are shifting their focus to better value areas or smaller properties to match their budget.

Zoopla has found by comparing last month to last year, an increase in share of sales for the cheapest 40% of the market by price and a drop in share of sales in the top 40% of the market by price.

This means demand is strong for first time buyers and home movers looking for value, but homeowners are cautious to upsize to bigger homes in the current economy.

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House price growth continues to slow, reducing to 4.1% year-on-year compared to 9% a year ago and quarterly growth has been negative for the last three months.

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