Cardiff Property Market Update: Spring 2023
Have you been on the fence over whether to buy in the current market, or wondering whether it’s a good time to sell? With so much discussion in the news recently about the current state of the property market, we thought it was time to set the record straight on exactly how things have been performing here in Cardiff. Watch my latest video to get an inside look at what we've been experiencing first-hand here at CPS Homes. - Nathan Walker, Sales Director
Better mortgage rates are now available
We’ve had a really strong start to 2023. Despite the rise in inflation and another recent rise in interest rates from 4% to 4.25%, it certainly isn’t all doom and gloom in the Cardiff property market – don’t believe everything you read in the news!
The rising Bank of England interest base rate has created more competition between banks and lenders, meaning that there are better rates available for buyers, with many banks – such as HSBC and Nationwide - reducing the rates on many of their products. This shows that lenders are growing more confident and taking a longer sighted view on the market, a really positive sign for buyers who are gladly taking advantage of the better rates now available.
How much is my property worth in Cardiff?
The question ‘how much is my property worth?’ is on everybody’s minds following the abundance of recent press reports suggesting that property prices are falling, You’ll be pleased to know that here in Cardiff, that doesn’t seem to be the case.
Wales as a whole saw property prices increase by 1.3% in the last recorded quarter (October – December 2022). That was part of an overall annual increase of 9.9%.
Here in Cardiff prices have increased at a slightly lower rate than the Welsh average, they are still performing well, with a recorded increase of 0.7% between October and December 2022. This was part of an annual increase of 9.2%.
What will my budget get me in Cardiff?
If you’re looking for a detached property, the average price is approximately £507,000. For a a semi-detached property you’re looking at around £350,00, or for a terraced house this would be in the region of £270,000.
Current market trends in the Cardiff property market
Over the past few months we’ve noticed a clear trend from buyers opting more turnkey style, finished properties that are newly renovated and move-in ready, compared to those which need a lot of work done. This is largely down to the increased cost in building materials and labour. By not needing to set aside savings to renovate, this allows buyers to put down larger deposits which brings down the cost of their monthly mortgages, making buying a home still an achievable goal.
How much have mortgage costs in Cardiff increased since 2022?
If we take the Welsh national average house price of £250,000, buying with a 20% deposit this year will cost you about £300 a month more than it would have in the same period last year.
But after that initial gasp, don’t forget the rise of monthly rental payments too. This means buying is a more affordable option for many people, even for those with smaller deposits.
What is the current market activity like?
Demand from buyers, whilst not as manic as it has been over the last two years, remains incredibly high here in Cardiff. Buyers’ attitudes seem to be acclimatising and catching up with the change in interest rates and the outlook for the local property market here in Cardiff seems a lot brighter than we previously anticipated, remaining strong and resilient, so we’re really excited to see how 2023 shapes up. The traditional ‘spring market’ is well under way and we’re seeing a similar number of new instructions and agreed sales compared with same period last year.
If you’re looking to make the most of the increased market activity that's starting to trickle in as we head towards Spring, now is the time to book in a free valuation with me or a member of our expert sales team. Get in touch on 02920 454555 or email sales@cpshomes.co.uk. You can, alternatively, request a free valuation via our website or get an idea of what you can expect via our instant valuation tool.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
