How is the housing market? Can I afford to move? What are the values like? The above three questions are some of the most frequent and common questions we are asked in the housing market and, often, the response to those questions is related to the economy and the general ‘feel good factor’. We see this regularly in the housing cycle, and in recent times we have seen it play out in a number of other situations. The United States election forecast, one of the closest run results ever seen and, yet, the final outcome was a resounding success and win for President Trump and the Republican party which had not been accurately forecast at all, something we have seen regularly in the past in our own country, with the Brexit vote and other general election outcomes.
It is clear that the current inflation results and interest rates support a downward trend, meaning that over forthcoming years we are expecting to see interest rates reduce even further, and whilst they may not reach the historic lows that we have enjoyed over the last fifteen years or so, they are certainly coming down again and this will please the majority of people who have borrowed to purchase their home with a mortgage. Some parts of the country last year, and in recent times, have seen house prices rise by between 5% and even 10% , whilst in other regions and in varying values, house prices have settled, or even fallen a little, and this is confusing; however, at the end of the day, it all seems to come down to how we feel and whether we have the confidence in property to buy, move and invest.
In the lead up to the general election this year, we had the least amount of concern or worry that I have ever seen coming up to an election because the majority of people knew what the result and answer was going to be and yet, once the new government was elected, sweeping statements were somewhat naively made in July about deficits, losses and the cost of the economy and how this would have to be paid for in the forthcoming budget. This led to an immediate downturn in confidence, leading to a reduction in viewings, offers and sales over the months of July and August, yet come September and October that downturn was reversed and viewings increased and offers and sales were made. Here we are in November 2024, post budget, which has obvious concerns for a number of people, but the majority are now looking forward to a period of increased demand for housing as our supply of property remains low and the number of people needing to move has increased, interest rates are low and are coming down and for the majority, viewing levels, offers and sales are now increasing at a time of year which would normally be quite quiet.
The feel good factor has a very significant contribution to any part of the economy and, whether you are a member of the Republican party in America who are now expecting sweeping changes for the better, you may feel good about the result of your election. Here in the UK, I am hoping that a lot of people feel good about the housing market at the moment, and I look forward to a positive and strong start to the beginning of 2025 and, going forward, for the next twelve months.
Our own local efforts have been reflected in a campaign which I have been heavily involved with, to improve the look of the High Street in Gosforth by adding festive, illuminated Christmas trees to the first floor of many buildings. I am very much hoping that it is a success and viewed by many of those travelling through, and living nearby, as being a positive factor in attracting people to enjoy meals and drinks out on the High Street as it will look more festive and will hopefully increase trade for those that work in that area, something very much needed. Yet another example of a feel good factor, I would like to thank personally our main sponsors, L.G.A. Foundation and Nigel Reeves of Reeves Independent Financial Advisors for their sponsorship of the campaign on Gosforth High Street, which would not happen without their financial support.
I am pleased to see, again locally, many good stories about the resurgence of the market in Sunderland, the increasing success of Teesside and its efforts to bring greater employment and larger industry, and about the ongoing possibilities of wind farm and battery power employment businesses within the region. I hope that even Sunderland and Middlesbrough football clubs are successful in bringing them up into the Premiership so that we can all prosper and enjoy competitive football games in the region together!
Here at Sanderson Young, we are doing our best at feeling positive and feeling good, having refurbished many of our offices in the last twelve months, improved our social media campaigns and the way we market our houses, as well as the investment we make into the promotion and sale of new homes, with our New Homes Hub, a regional centre of excellence for the sale of newly built properties of which we have many great sites representing some of the increasing number of smaller and medium developers in the region. One of our greatest assets in estate agency continues to be our people and here in the company, we have seen further new posts being created and jobs being made for locals who we know have got the maturity, knowledge and skills we require to sell as many houses as possible.
As we end 2024, and look forward to 2025, we do so in the knowledge that the region is faring well and that we have many positive factors for trading in the next twelve months. Our company remains very proactive, positive and keen to help our clients move their homes and buy or sell, as well as rent in the near future. We will continue our efforts to accurately forecast and support our clients with strong marketing initiatives, excellent social media and great presentation to ensure the best results for their home move.
We hope that your world beliefs, home and work visions are positive and full of feel good factors for the future.
I very much look forward to being able to help our clients, and I am available to discuss any of your property requirements on my email duncan.young@sandersonyoung.co.uk
Very kind regards and best wishes,
Duncan G Young
Chairman
SANDERSON YOUNG