"The availability of mortgages and cost-of-living pressures seem likely to play a significant role in shaping market conditions in the near-term"
Landmark’s newly released Q1 Residential Property Trends report analysed property data for Q1 2023 across the entire residential property transaction chain, and found that supply strengthened throughout the quarter, following house price corrections and settling of interest rates which left home movers better able to progress with planned house-moves after the uncertainty of Q4 2022.
Cross market activity
There’s no dramatic change to the volume of transactions reaching SSTC in Q1 ’23 vs Q4 ’22, possibly due to homeowners waiting for market stability. Searches ordered in Q1 ’23 also remain consistent with Q4 ’22 although they are 31% down vs Q1’19. Completions slowed in Q1 ‘23 – down 10% on Q4 ’22 volumes. This is likely due to the low SSTC figures at the end of Q4 ‘22.
Listings data relative to 2019
Supply volumes were below 2019 at the start of the year, likely due to the unease of Q4 ’22 and the following, sudden drop in demand.
However, by March ’23, supply volumes exceeded those in March ’19 by 6%. The market appears to be finding its feet again. Transaction levels over the coming months will confirm whether or not the trend will continue.
SSTC
SSTC volumes ended the quarter 22% below in March ’23 vs March ‘19
Property Search to SSTC
Residential search volumes for January this year are 38% down compared to January ‘19
SSTC volumes are recovering at a faster rate than search volumes, indicating a rising market. If this continues in Q2 ’23, then we will be in touching distance of 2019 volumes.
Simon Brown, CEO, Landmark Information Group, said:
"As the housing market stabilises after the disruptions of last year, consumers’ ability to buy continues to determine market trajectory. While there is still a strong appetite among movers, the availability of mortgages and cost-of-living pressures seem likely to play a significant role in shaping market conditions in the near term. We see a recovery in property listings needing a similar level of mortgage availability for the market to overcome its recent corrections and adjustments."
