JANUARY 2025 Property Market Insight

Following a tumultuous few years, 2024 marked a significant recovery phase, with strong market activity underpinned by declining interest rates, improved affordability, and renewed buyer confidence.

In this blog, we’ll dive into key market insight, explore year-on-year and five-year trends, and highlight expert predictions for 2025. We’ll also include a detailed analysis of the latest market trends in Edgbaston and Harborne, taken from B15 and B17 postcodes, to uncover what’s happening at a local level.

Market Trends: 2024 vs. 2023
The data reveals a year of improvement in 2024 compared to 2023:

• New Listings and Sales: The number of new properties entering the market increased, creating greater buyer choice. This resulted in a 2% increase in sales agreed compared to 2023.
• Interest Rates and Affordability: With average two-year fixed mortgage rates falling to 5.05% and five-year rates at 4.80%, more buyers returned to the market after 2023’s higher rates deterred activity.
• Resilience in Pricing: Despite the challenges of 2023, house prices rebounded in 2024, with the latest Land Registry data indicating a 3.4% annual increase, bringing the average UK property price to £292,000.

B17 Insights: Recovery and Realignment

The B17 postcode saw steady growth in market activity in 2024. Here's how it compares to previous years:

• Properties for Sale: The number of properties available rose to 257 in 2024, marking a 3% increase from 2023 and a 5.8% rise compared to the five-year average.
• New Listings: New listings increased by 9.8% from 2023, reaching 622.
• Asking Prices: The average asking price for properties in B17 increased by 4.6% year-on-year to £423,404. However, this remains below the 2022 peak of £445,718.
• Sales Agreed: Sales rose by 2% year-on-year, with 395 sales agreed in 2024.
• Price Per Square Foot: There was a slight 0.6% decrease in the asking price per square foot compared to 2023, with sales closing at an average of £335 per square foot.
  This data underscores a balanced recovery in B17, with increased supply providing buyers with options while sellers achieved stable sale prices.

B15 Performance: Luxury Market Resilience (Houses Only)

The B15 postcode, known for its affluence, also showed promising signs of recovery:

• Properties for Sale: The number of properties on the market climbed to 63 in 2024, a substantial 43% increase from 2023 and 37% above the five-year average.
• New Listings: There was a significant 48% rise in new listings year-on-year, with 154 properties entering the market.
• Asking Prices: Despite a slight 0.5% decrease in average asking prices to £851,240, this remains one of the highest in the region.
• Sales Agreed: Sales activity grew by 20%, with 72 properties sold compared to 60 in 2023.
• Price Per Square Foot: The sale price per square foot decreased by 1.6% from 2023, with properties achieving £435 on average.
  B15’s performance highlights its resilience as a luxury market, with strong buyer demand despite minor fluctuations in pricing.

Q4 2024 Market Insights

B17
In Q4 2024, the number of properties for sale in B17 stood at 253, a slight increase from 247 in Q4 2023. However, new listings decreased to 96, compared to 105 in the same quarter of the previous year.

The average asking price showed a significant rise, reaching £408,346 in Q4 2024—a 9.5% increase from £372,936 in Q4 2023. Sales prices per square foot dipped marginally, averaging £329 compared to £330 the year prior. Sales agreed saw a decrease to 87 from 107 in Q4 2023, reflecting a more tempered pace in closing transactions.

B15
The luxury market in B15 saw strong growth during Q4 2024, with properties for sale increasing to 73—a 69.8% rise from 43 in Q4 2023. New listings also grew significantly, reaching 36 compared to 24 in Q4 2023.

Despite a slight decline in the average asking price to £741,528 (down 4.5% from £776,621 in Q4 2023), sales agreed surged to 24—an 84.6% increase from the 13 recorded in the previous year. The price per square foot for sales was slightly down from £444 in Q4 2023 to £410 in Q4 2024, reflecting minor adjustments in high-end market pricing.

If you’re considering a move this year, now is the perfect time to assess your options. Interested to know the sale value of your property? Get your market appraisal—visit McHugo Homes or contact us at movinghome@mchugohomes.co.uk for expert guidance and insights.