Welcome to your first Wokingham High Value Property Market Update for 2023.
A brief look back at 2022
The year began with a growing uncertainty about the strength of the UK economy, coupled with dramatic downward predictions and gloomy forecasts from anyone who claimed (however remotely) to be a property ‘expert’.
As expected, the Bank of England stepped in several times to slow the rate of inflation with base rate hikes, whilst Putin’s invasion of Ukraine caused a titanic uplift in energy prices and therefore the basic cost of living. This was a rocky period for the UK economy, and therefore, the Wokingham property market. August saw a downturn in market confidence, which worsened when Liz Truss and Kwasi Kwarteng announced their chaotic fiscal plans.
A quiet property market followed in the run-up to Christmas, with both buyers and sellers cautious to find out what would come next…
The early weeks of 2023
I am delighted to type that what came next was a series of positive cues:
Positive cue #1: Unexpected economic stability
The doom-and-gloom forecasts presented in 2022 by the media et al. have not materialised. The latest economic updates suggest that inflation, the bank base rate and the cost of living will not reach anywhere near their predicted figures.
Positive cue #2: More attractive mortgage rates
To counter the fallout from the ‘mini budget’, the BoE put up the bank base rate, resulting in a steep hike in mortgage rates. Thankfully, due to a period of relative economic and political calm, mortgage rates have settled down and are now returning to levels close to the long-term norm.
Positive cue #3: Upward-trending House Price Index
While it’s still early days, the latest House Price Index (source: Rightmove) suggests a positive property market outlook for 2023. Even though buyer demand is down a third on this time last year, it is UP 4% compared with the same period in 2019. There is also a higher-than-expected bounce back in activity, suggesting a much more encouraging 2023 than many predicted. We have seen this first-hand with some of our highest priced homes going under offer since Christmas.
Recent Sales
School Road, Arborfield £975,000
Chestnut Avenue, Wokingham £1,695,000
The Terrace, Wokingham £1,750,000
In addition, after having logged month-on-month house price falls in November and December, Rightmove reported a surprising upturn of 0.9% in the new year.
Positive cue #4: Last bank base rate rise for some time?
Although the Bank of England has just raised the base rate by 0.5% to 4% (the 10th rise in succession and the highest base rate since 2008), all signs are pointing to this being the last major hike, with experts suggesting that rates will remain steady for the next 6 months, and may come down at the end of the year. “Inflation will fall rapidly at end of year” said Bank of England governor Andrew Bailey, adding that the Bank has seen the “first signs that inflation has turned the corner”.
Whatever the policymakers decide to do when they next meet at the end of March, the bank base rate doesn’t look like it will get close to the 6% predicted by some, and will more likely peak below 4.5%.
How long are homes taking to sell?
According to Rightmove, properties took an average of 52 days to sell in December, up from 32 days back in May 2022. However, this is significantly lower than it was in February 2020 (the month before the pandemic hit), when the average was 76 days.
If you’re thinking of selling your unique Wokingham home in 2023, we have some expert tips to help you:
4 Expert Tips for Selling in 2023
(Photo taken from Milton Road, Wokingham)
Timing: the choice of when you launch your home to the market is important, but choosing to sell when other homeowners are waiting for the ‘right time’ may give you a big competitive advantage. For example, whilst springtime is perceived as a traditional time to sell, marketing your home before the rush could help you to stand out in a less crowded market. The answer with timing is always, ‘it depends’. Different types of properties and distinct price ranges tend to attract more interest at specific times of the year, so please ask us about your home, and we can share our thoughts with you on timing, always taking your plans into consideration.
(Photo taken from The Terrace, Wokingham)
Marketing: during the pandemic, homes sold easily. It didn’t matter which estate agent you were with, the moment your home was listed online, multiple viewing requests would follow straight away.
This is no longer the case. It’s as simple as this: the better the marketing, the higher the interest in your home. Marketing (photography, brochures, copywriting) has a huge effect on not only the number of viewings you’ll have on your home, but also the speed of sale and the price for which your home will sell.
(Photo taken from Rectory Road, Wokingham)
Presentation: as with the marketing, we’re back to the days of wooing potential purchasers with the lifestyle your home offers. Rather than just showing each room in your home, it’s vital that every space has its own unique use.
That’s why we offer a ‘Home Styling Consultation’, when we can advise which styling accessories – like cushions, throws and bedding – will help to wow your buyers and generate that valuable offer.
(Photo taken from Chestnut Avenue, Wokingham)
Pricing: prices have come down since last year.
Depending on factors such as type of home, location and historical sale data, your home could be worth anything from 5% to 10% less than it was two years ago. However, with the right advice on timing, marketing and presentation, you can still attract very strong offers, and we do so every week. Whilst buyers are still somewhat cautious, we can advise you on the optimum price strategy to get you that all-important early offer at the level you need to move on with your life. We know that pricing your home too low risks leaving money on the table, but too high, and you simply won’t get viewings. Let us guide you and share with you our carefully considered pricing strategy for you, your home and your plans.
What next?
COMING SOON:
Secret Address £1,750,000
4 Bedroom detached house with 4 acres of land, 20 minutes from Wokingham town centre
Watch out for many beautiful homes coming to the market AND lots of new buyers eager to snap them up!
How to get in touch?
A chat over a cup of tea is our favourite way of getting to know you and discovering your thoughts and plans. You’ll never be wasting our time; on the contrary – it’s our job to help the owners of unique homes in our lovely area to make informed decisions.
3 ways you can arrange a visit with us when you’re ready to do so:
Email me direct on daniel@pauk.property
Text or WhatsApp me on 07930 301015
Call the team on 0118 912 2370
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