Teignbridge Property Market Outlook - Predictions for 2023

After a year of property market highs, market shock and the uncertainty, what next? A period of readjustment fuelled by media speculation, political uncertainty both home and abroad, a cost-of-living crisis and rising interest rates. But it’s not all doom and gloom.

Enquiries between Christmas and New Year were steady and since the market fully reopened on 3^rd January, we have been busy. Based on our available data, here are our predictions for 2023:

This year, your guide price and marketing will be critical, so both knowledge and experience will be key in achieving your property goals. In a rising market, guide prices tend to factor in price increases yet to come. In a market which is levelling off or potentially adjusting downward, homes previously listed at optimistic prices are now suffering from a lack of interest. To a degree we are seeing evidence of this now, with fewer viewings being requested and times to agree a sale increasing. In many instances this does not mean the value of a property has dropped, only that the guide price may have anticipated a further rise in the market which did not materialise. We will therefore see guide prices drop in the short term. Prudent sellers will react promptly to this change adjust their guide prices and achieve sales.

Variable mortgage rates will continue to rise as the BOE continues to fight inflation. Medium to long term fixed rates may well continue to fall. Overall, there will be a reduction in affordability which will affect prices. Interest rates will still be low when compared with historic rates. This will mean, barring other factors, the property market, especially in popular areas, will be resilient. We expect an average adjustment in actual sale prices of around five percent during 2023, meaning most homes will be changing hands at healthy early 2022 prices. Different property types will be affected to a greater or lesser extent.

The level of transactions is likely to fall from 2021/22 levels, so we will be working harder to get our clients’ properties sold. We predict that the overall transaction levels in our area are likely to be twenty five percent lower than 2022. This will be down to affordability issues for first time buyers and because more established home owners and investors will delay sales and purchases. Typically, those who do not have to act sit on their hands in changing times. The level of transactions will be buoyed up by those who are moving out of necessity rather than choice. Factoring this into our prediction, the level of transactions will still be good.

Demand in Teignbridge will be higher than average and our market will outperform other areas. Permanent changes to working practices since Covid and the many benefits of our area and excellent communications, mean we will see the difference between prices in Newton Abbot and the surrounding areas and the prices in the South East decrease. 

If we see a resolution to the situation in Ukraine, energy prices will drop, reducing the cost of living and inflation. Should this combine with a more settled political situation in the UK, the outlook for the property market is very good. The more positive the effect those in power can have on NHS and other public services and the general morale of the country, the better the outlook is. We expect prices to be higher than current levels by the end of 2026. This is dependent on no major tax changes adversely affecting the property market or investment in property. A positive approach from the media could also provide an additional boost to the property market and broader economy.

As most properties are owned for a period of five years or more, those who purchase during the next twelve months are likely to see a substantial increase in the value of their properties by the time they sell.