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A note from our Director

A note from our Director, Julia Ferrari, on the current real estate market

As we navigate through 2024, the real estate market continues to evolve in response to global economic trends. At Ferrari Real Estate, we strive to stay ahead of these changes to better serve our clients. Today, I’d like to share some insights based on Investec’s latest macroeconomic overview and what it means for our boutique estate agency here in Knutsford, Cheshire.

Inflation and its implications

The Bank of England forecast that inflation will return to its 2% target by the second quarter of 2024 is a significant milestone. For the first time in three years, we are seeing a return to stability. This moderation in inflation is likely to enhance consumer confidence, a critical driver in the real estate market. However, the Bank also expects inflation to rise towards 3% later in the year as the impact of lower energy prices diminishes. 

In the United States, the Federal Reserve remains cautious, with inflation measures rising more than expected. The EU forecasts a decline in inflation from 6.3% in 2023 to 3.0% in 2024, and further to 2.5% in 2025. This stabilisation in prices is expected to drive consumer confidence globally, leading to a more positive market outlook.

For our local market in Knutsford, these global trends suggest a mixed but generally optimistic forecast. As inflation stabilises, potential buyers and investors may feel more secure in their financial planning, leading to increased activity in the property market.

 

U.K. historical inflation forecast

GDP and Economic Growth

The global economic landscape is showing varied signs of growth. There is strong momentum in countries like India, Indonesia, and China, despite relative weakness in Europe. China’s GDP growth of 5.3% in the first quarter of 2024, driven by public investment and industrial manufacturing, exceeded expectations. This growth is a positive indicator for the global economy, despite some concerns about its sustainability.

In contrast, Europe’s near-term growth remains mild. However, the overall global growth, which was estimated at 3.1% in 2023, is projected to slow slightly to 2.9% in 2024, before increasing to 3.0% in 2025.

For the UK, these trends imply that while we may face some economic headwinds, the broader global growth outlook provides a cushion. Locally, in Knutsford and the surrounding Cheshire area, we can expect the property market to benefit from increased stability and confidence as global growth influences local economic conditions positively.

GDP forecast 2024

The local real estate market in Knutsford

Here at Ferrari Real Estate, we have observed that the local market remains resilient. Knutsford continues to attract buyers due to its unique charm, excellent schools, and vibrant community. The anticipated global economic stability is likely to bolster our local market further.

Buyers are increasingly seeking properties that offer long-term value and sustainability. With inflation expected to stabilise and GDP growth showing positive signs, we anticipate a steady increase in property transactions. This is particularly true for high-quality, well-located properties that continue to be in demand.

Strategic considerations for buyers and sellers

For buyers, the current market conditions suggest that now is an excellent time to invest in property. With inflation stabilising and consumer confidence expected to rise, property values are likely to appreciate. Additionally, the potential for rising inflation later in the year means that securing a property sooner rather than later could be advantageous.

Sellers, on the other hand, should be prepared to capitalise on the increased demand driven by improved consumer confidence. Presenting properties in the best possible condition and pricing them competitively will be key to attracting motivated buyers. At Ferrari Real Estate, we are committed to providing the best advice and support to ensure our clients achieve their real estate goals.

Looking ahead

As we move through 2024, the interplay between global economic trends and local market dynamics will shape the real estate landscape. At Ferrari Real Estate, we remain dedicated to understanding these trends and their implications for our clients. We are here to navigate these changes with you, ensuring that you are well-informed and well-prepared to make the best decisions for your investments.

In conclusion, while there are challenges ahead, the outlook for the real estate market is generally positive. The stabilisation of inflation and continued global growth provide a solid foundation for confidence in the market. As always, we are here to guide you through every step of your real estate journey, reach out to us today

Warm regards,

Julia Ferrari  (Director, Ferrari Real Estate)

Published: 14/06/24