Navigating the Rollercoaster of the Last Six Years

The Gravesend property market has experienced a rollercoaster ride since 2019, reflecting the unprecedented challenges and opportunities that have shaped home buying and selling in the area. The following analysis compares Gravesend’s monthly house sales as a percentage of the six-year (2019-2024) average and the Bank of England’s base rate over the same period.

The Pandemic’s Impact and Post-Lockdown Surge
The first significant event was the pandemic and lockdown in early 2020, when the property market ground to a near halt. In April 2020, house sales plummeted by 88.2% below the six-year average. However, once lockdown measures eased, the market rebounded with sales soaring 48.6% above the average by mid/late 2020. This surge was driven by pent-up demand, government incentives like the Stamp Duty holiday, and a renewed desire for home ownership.

The Truss Budget and Rising Interest Rates
The market remained buoyant through 2021, but sales began to normalize towards the end of the year. In mid/late 2022, the “Truss Budget” caused market instability, rising mortgage rates, and a dip in sales as buyer confidence declined. The Bank of England responded to inflation by increasing the base rate, peaking at 5.25% in 2023. This rise in rates reduced affordability, particularly for first-time buyers, and cooled the market.

Resilience and Recovery in 2024
Despite the challenges of higher interest rates, the Gravesend property market in 2024 shows resilience, with monthly sales stabilizing and remaining above the long-term average.

In Depth Annual Data for Gravesend (DA11/12 Postcodes)

• 2019: Avg. 108 properties sold per month, 9.2% lower than the six-year average of 119.
• 2020: Avg. 112 properties sold per month, 5.8% lower than the six-year average.
• 2021: Avg. 145 properties sold per month, 21.9% higher than the six-year average.
• 2022: Avg. 119 properties sold per month, matching the six-year average.
• 2023: Avg. 106 properties sold per month, 11.1% lower than the six-year average.
• 2024 YTD: Avg. 127 properties sold per month, 6.4% higher than the six-year average.

This sustained activity suggests that demand for homes in Gravesend remains strong, driven by factors such as the area’s appeal, affordability compared to renting, and the flexibility of work-from-home culture. Sellers are becoming more realistic with pricing, and buyers are adapting to the new interest rate environment.

Looking Ahead: A Market of Opportunity
As we move deeper into 2024, the Gravesend property market offers opportunities for both buyers and sellers. Sellers can benefit from strong demand for well-priced properties, while buyers may find this stabilizing market an ideal time to secure a home. If you’re considering moving in the next 6 to 12 months, now might be the perfect time to explore your options. Contact us for a free, no-obligation valuation and market appraisal of your Gravesend home. Let’s work together to navigate this dynamic market and achieve your property goals.