The desire to move home continues to be driven by a range of demographic and lifestyle factors. Whatever the motivations, the key message for anyone serious about moving in 2023 says Zoopla is the need to be realistic on price, seeking the views and expertise of local agents as they plan their move.
The resilience of the housing market and homebuyers requiring mortgages is set to be tested once again as interest rates move closer to 6%. The increased hit to buying power will result in lower prices and sales volumes, although the transition to higher borrowing costs will take time to feed through adds Zoopla.
The good news is that there is a large equity buffer to absorb house price falls making the risk of negative equity much smaller than in previous downturns. The bigger challenge for housing activity is the affordability of monthly payments for buyers, and those remortgaging, set against the wider increase in other costs of living. Household budgets are being squeezed and Zoopla says we look set for a prolonged period of low nominal house price growth which will result in a steady re-alignment of house prices and household incomes over the next 3-5 years.