Property sales reach significant milestone of 100,000 per month
In the UK, property transactions have seen a significant boost, with the number of completed transactions surpassing the 100,000 threshold for the first time since December 2022, according to data from GetAgent.co.uk. This upward trend has been observed over the past few months, with an average increase of 2.2% per month.
The CEO of GetAgent.co.uk, Colby Short, attributed this surge to the stability in the market, which has encouraged buyers to take action. He explained that the time required to push a sale through from offer accepted to complete has been a significant factor in the increase in transactions.
In the US, the property market has also experienced a similar revival, following the Federal Reserve's decision to hold interest rates steady in August 2024. This decision, coupled with the relative stability in mortgage rates and improving market conditions, led to an increase in property transactions.
Mortgage rates remained elevated but stable around the upper 6% range (approximately 6.7%) throughout mid-2024 into August. This stability encouraged more buyer activity as it removed uncertainty around borrowing costs. Housing inventory levels were also rising, providing more properties for sale than at any point since before the pandemic. This greater availability, combined with sellers making more concessions such as price cuts and incentives, improved market fluidity and supported increased transaction volume.
Despite past rate hikes pushing mortgage rates higher (above 7% in late 2024), the holding of rates in August helped calm the residential market. Moderation in inflation and stable economic signals led to expectations that mortgage rates might gradually decline later in 2024 or into 2025, further boosting buyer confidence.
The increased property transactions in both the UK and US markets reflect the resilience of the housing markets to monetary policy shifts. Unlike other countries with higher variable-rate mortgage shares that showed immediate reactions to rate changes, the U.S. market—with a larger share of fixed-rate mortgages—demonstrated moderate adjustments, which helped maintain transaction momentum after the rate hold.
Colby Short suggested that the UK market is unlikely to return to full strength until next year in terms of transaction levels. However, he expressed optimism about the current trend, stating that the Bank of England's decision to hold interest rates at 5.25% has boosted the market's confidence tenfold. The research shows that the figures for August suggest the property market is starting to filter through to transactional volumes.
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Investing in real estate seems to be a promising venture in both the UK and US, as the housing markets in these countries have witnessed a revival. The surge in UK property transactions, surpassing the 100,000 threshold for the first time since December 2022, is attributed to the stability of the market and improved market conditions. Similarly, the US property market has experienced a similar revival, largely due to the Federal Reserve's decision to hold interest rates steady in August 2024, along with the stability in mortgage rates and the rising housing inventory.
