The slowest months of the year for a new-build market activity for developers in the industry are December, January, and February. However, despite the fact that sales are expected to stagnate over the holiday season and into the new year, developers frequently reach their best prices then. According to a market research by Unlatch, throughout the past ten years, an average of 21,674 new-build sales have closed during the winter months, or 22.4% of all sales recorded in the year. This figure includes both transactions and the average house price attained by each season. Summer is the busiest season, making up 27.8% of average yearly transactions during the previous ten years. Summer is followed by autumn (25.5%) and spring (24.3%). To speed up your property transactions you can always rely on experts like estate agents in Winchester.
In addition, analysis of the average annual rate of transactional growth over the past ten years by Unlatch research reveals a decline in the number of new-build sales during the winter by an average of -3.3% annually, with the only other season experiencing a decline at an average annual rate of -1.2%.
For the country’s developers, who are suffering through a long, chilly winter of sparse market activity, there is one bright spot. The average new-price build’s is by far at its greatest during the winter, averaging £375,860 in the past winter, with the fall ranking second best in terms of price obtained at an average of £353,175. Additionally, during the past ten years, the average price of a new home has climbed by 86% during the winter, 73% during the autumn, 63% during the summer, and 61% during the spring.
For the whole real estate industry, the winter months frequently signal a slowdown in market activity as people initially focus on Christmas, followed by a time of quiet market activity when people get back to work after the holiday break. One prevalent assumption, meanwhile, is that a decline in demand would necessarily result in a decline in house prices, especially in the new-build industry.
In fact, compared to the other four seasons, new homes sell for much more throughout the winter. This is largely because there is a consistent flow of high-quality purchasers, many of whom are from abroad and aren’t deterred by the nationwide commotion surrounding Christmas. It’s also important to note that websites like Rightmove get their peak traffic volume on Boxing Day, which is typically when people start considering changing their living and personal circumstances.
Therefore, even though many developers may have a slower period over the upcoming months, those transactions they do close are probably well worth the effort—definitely it’s a case of quality over number.
Everyone has an opinion about the ideal time to purchase a property. Here are some explanations for why wintertime may be ideal. Real estate trends would seem to support the conventional belief that spring and summer are the best seasons for home purchases. Most house sales occur in the months of May through August across the country, with a decline in sales and inventory over the winter as homeowners take their properties off the market for the holidays.
But that doesn’t imply you shouldn’t buy a house in the winter just because most people prefer to look for properties when the weather is pleasant. Many consumers may find that making purchases in the winter is preferable to making purchases in the summer.
With forecasts for declines in both home prices and the volume of sales the next year, there may be more opportunity for residential new construction, with hopes the industry will outperform the general market. In a market where sellers are hesitant to list their homes, new construction homes have emerged as the simplest—and sometimes the only—option for people who still need to relocate.
A comparable situation may possibly occur right now, especially once interest rates stabilise and start to decline in 2024, according to Savills researchers. The impact on affordability will be greatest for buyers who rely on mortgage financing to make their purchases. According to Savills’ data on new home sales, 49% of buyers of new construction are believed to be doing so without a mortgage, as opposed to 35% for the entire housing market.
53% of these buyers are entirely chain-free, compared to 43% who are reliant on the sale of their current home. We predict that the number of cash purchasers will be higher than other segments of the market in 2023, declining by 14% as opposed to a 35% decline in the number of first-time buyers (FTBs).
Again, there is reason to anticipate transaction volumes may perform better than the overall market given the higher percentage of cash purchasers in the new home market.