The festive season is a time of traditions; there is a warm decadence to the familiar celebrations with family and friends and the joy of seeing decorations pop up everywhere. Still, I’ve been thinking. What happens when traditions change?
I’m not talking specifically about Christmas here, but rather the traditions of the residential property market. Except this year, and perhaps in recent years as well, we haven’t seen them unfold as we usually expect.
Consider the traditional ‘Spring selling season’.
It was a timeframe that both buyers and vendors worked towards. There was an expectation that, as the weather warmed, more properties would come to market and with them, more buyers would follow.
But this year not so much. Spring didn’t bring with it a surge in demand, nor a surge in listings. Rather, it was steady. And whilst the market remained relatively strong, we didn’t see the traditional Spring selling activity.
So… what does that mean for the holiday period?
Traditionally the market quietens over Christmas and New Year but I’m not so sure that will happen this year. Rising interest rates have a huge potential to impact market activity, and another rate rise yesterday is not something anyone wanted as a present.
However, the fact that this is the eighth consecutive rise in as many months is also normalising the experience for new home buyers, who have enjoyed low rates for many years. Let’s not forget the double-digit interest rates which plagued homeowners in the 1990’s. People are adaptable, they understand and embrace a change in traditions when it is warranted. Therefore, I anticipate market activity over the holiday season might surprise. Whilst enquiries might ease a little, they won’t disappear completely. Indeed, there may be opportunities as buyers seek to lock in their finances (and their dream home) before rates rise yet again.
Whatever the case, Morton is ready. Some traditions may change, but call us old fashioned, we will stick by our long-held tradition of providing quality service and advice to our clients whenever they need it.