Is it doom and gloom for the Bath housing market?

What is happening with house prices in Bath?

Cost of living, high inflation and increased interest rate rises has had a ripple effect on house prices.

In August, nearly a third of stock on Rightmove in Bath was reduced. On average advertised property prices were lowered by 7.2% in BA1 and 6.4 % in BA2.

This may appear to be doom and gloom, however it is the contrary.  We witnessed soaring house prices whilst the country was gripped by the pandemic, with homeowners being in a race for space. This led to exponential house price growth in Bath, with property prices today Circa. 20 % higher than in January 2020.

With more properties on the market and without the abnormal surge in demand, this feels like normal market conditions.

Should I move or wait for the market to improve?

If you are a seller looking to make an onward purchase, there is no reason why you should wait. House prices are relative, if your property has decreased in value, this is likely to apply to your new home.

We recommend buyers seek financial advice to understand what they can afford, so they are not left deflated when they find their dream home.

If you are a buyer, now is a great time to purchase a property. There are 43 % more available properties on Rightmove than a year ago, there is an abundance of choice.

Fundamentally, moving depends on your individual circumstance. Speak to an estate agent you can trust; they will guide you based on your personal needs.

Are properties selling?

This year Bath has remained resilient with sales agreed from May-July outperforming 2022 by Approximately 7 %.

August has seen a softening in the number of properties going under offer. Contributing factors include the increased supply of available properties for sale, lower buyer demand and the school holidays. However, with the busier autumn market, sellers being more realistic with their asking price and properties being reduced we expect to see this stabilise

Are increased mortgage rates preventing property purchasers from buying?

At Camella, we are seeing an influx of cash buyers. Due to the historic lack of property supply, there were many vendors who were forced into rental properties as they could not find a home. Today, with more property choice, these buyers are re-emerging and are actively looking to buy a property.

The rates at which banks lends money to each other (swap rates) are coming down. Despite 14 consecutive interest rate hikes, Nationwide, NatWest and HSBC have already introduced cuts of 0.29 percentage points with other lenders following suit. Recently, Nationwide has released a five-year fixed rate mortgage deal below 5 % which is the lowest since June this year. We may see further cuts to mortgage rates as major banks compete, which will give the market a needed boost.

In summary, the outlook for the Bath housing market is positive as home movers readjust to the new norm.