Housing Market Defies Expectations and Interest Rates Likely to Return Toward Pre-Pandemic Levels

In some welcomed news to the property market, the IMF released a report in April that suggests that the recent interest rate rises experienced by property owners with mortgages are likely to return to pre-pandemic levels.

The report, which can be found here, states in part “recent increases in real interest rates are likely to be temporary. When inflation is brought back under control, advanced economies’ central banks are likely to ease monetary policy and bring real interest rates back towards pre-pandemic levels.”

Mortgage rates are set to remain around 4% over much of 2023 and could move lower towards the end of the year.

The sales market has also seen better-than-expected results, with demand for homes at its highest since October 2022 and 16% higher than spring 2019; no doubt helped by a strong labour market and falling interest rates.

Because of price stagnation since 2016, the property market is also expecting the popularity of inner London flats to see a resurgence; we at Stonebridge have already started to see this in Highgate, N6. We have experienced stronger than average buyer registrations. With sales taking on average 3 weeks to agree. Flats having many more enquiries than we saw early 2022. A welcome change for our clients.

If you would like to discuss a sales valuation, rental appraisal, or anything else property related without obligation, we would be delighted to welcome you to Stonebridge, the home of the property experts.