Bristol Property Market Update August 2023

Bristol Property Market Update

Bristol Property Market Update…. As was a broadly expected (following last month’s better than expected inflation figures) the MPC has raised interest rates by 0.25% today bringing them up to 5.25%.

This is not expected to rock new mortgage rates as most lenders, and certainly, the Big Five, reduced their borrowing rates over the past week or so taking advantage of the Gilt market which also came down after the positive news on Inflation.

Looking at the wider market, opinion is of course still spread – although a trend does seem to be emerging that “the worst is over” and we’re almost certainly in for a soft landing.

As August is traditionally quiet it will be hard to see an immediate effect to today’s news but we expect Bristol house prices to broadly follow the trend we predicted at the beginning of the year – namely a 5% decline in Bristol house prices over the course of 2023.

At present, data from Acadata (see graph) suggests that Bristol is +4.3% YoY (as opposed to the Nationwide’s Macro UK figure of -3.8% to July) but that is taking figures to June and we suspect once we have July and August’s local data this will see a slight downward trend in the local market too – bringing the negative figure closer to -5% as we end the year.

As can be seen from the graph, 3 months to June is just +1% so the slow down is on its way.

Overall though both buyers and sellers should have something to celebrate… For vendors stock is still low, and buyers are paying sensible prices for the best stock and demand is still strong.

For buyers, there are still good buys to be had! Increasingly stock is coming to the market at “today’s prices”, reflecting price changes within the wider market which are being responded to very positively. Cash buyers can flex their “we don’t need a mortgage” muscles yet those with borrowing, and/or in a chain can offer determination and motivation – equally compelling factors in today’s market.

For further advice please do not hesitate to email home@oliverroth.co.uk or call 0117 987 7828

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