Our property market predictions for 2023
I will first take a step back and review how my predictions for 2022, made at a similar time last year, have stood.
2022 was indeed a year determined by 'supply'. The post pandemic financial pinch very much remained (and still remains), but through the later course of 2022 this became somewhat unfortunately eclipsed by the wider financial repercussions of Putin's war in Ukraine, and also Liz Truss's short stay Downing Street.
Despite these headwinds the property market in Oxfordshire did however hold firm. The obvious financial pressure of rising interest rates, mortgage lending instability and the cost of living crisis remain all too real and of course bear impact, but are felt to a lesser extent in Oxfordshire thanks to our vast science, technology and eduction employment sectors.
The upward trajectory in price rises of two previous years are now over. However buyer demand thankfully remains strong. For sellers willing to be realistic on price, and for buyers willing to be sensible in their ambitions for negotiation, there will be synergies which lead to successful sales. An Estate Agent contact remarked recently 'every buyer thinks it's 2009 (bust) and every seller thinks it's 2020 (boom) ... and neither is right!'
The landscape for Estate Agents looks almost certain to change. Platforms like Instagram are proving an increasingly quick, direct and powerful tool in attracting, educating and building relationships with buyers and sellers. Agents must accept this inevitable change and adapt. Transaction levels seem likely to fall, and so competition amongst agents will become even tougher.
The lettings market appears comfortably buoyant, although there is a clear requirement for more investment in the private rented sector. Rising rents are a product of the declining numbers of private rented properties, and whist demand for these remains strong there is an obvious in-balance.
Overall I suspect I am not along in wishing for a year of lower transaction levels, but static pricing. The 'cooling off' of the market should even attract some institutional and private rented sector investors back, and thus help to boost the numbers of available rented properties with some curbing effect on rental growth.
At OXON Property Search we have seen a direct increase in prospective Buy to Let investor client enquiries since the Autumn of 2022, and the winds of change across the market are what I believe is driving this shift.
To discuss the shape of the local property market for the year ahead, or to tell us more abut your moving, relocation, or Buy to Let investment plans please don't hesitate to make contact. I look forward to hearing from you!