The average asking price for homes across the UK has seen a significant decrease, dipping by nearly £7,000. The latest data from Rightmove reveals a 1.9% month-on-month decrease in the average asking price for new sellers, now standing at £355,177. This reduction is not just a minor fluctuation but a substantial £6,966 less compared to November’s figures. It’s important to note that while prices generally dip in December due to seasonal factors, this year’s decrease surpasses the average 1.5% drop observed over the past two decades.
2023’s Market Resilience
Looking back at the year, the property market has shown remarkable resilience. Despite predictions of a steep decline, the annual figures from Rightmove indicate that the average asking prices are just 1.1% lower than they were a year ago. This is a significant revelation, especially considering the high mortgage rates that have stretched buyer affordability throughout 2023.
Tim Bannister, Rightmove’s director of property science innovation, acknowledges the challenges posed by high mortgage rates. He notes, “High mortgage rates, which have added to already-stretched buyer affordability, have been a challenge throughout 2023 and this is likely to carry into next year.” However, he also points to a sense of calm and certainty as we head into 2024.
Looking Ahead to 2024
As we approach the new year, Rightmove offers a cautious yet optimistic outlook. They predict a national average drop of 1% in asking prices for 2024. This forecast comes despite a recent fall in mortgage rates, suggesting a continued competitive market for sellers.
What This Means for You
For potential buyers, this could be a window of opportunity. The decrease in asking prices, combined with a slight ease in mortgage rates, might make it a more favorable time to enter the market. Sellers, on the other hand, might need to brace for a more competitive environment, adjusting their expectations and strategies to attract buyers.
In summary, the UK housing market is experiencing a notable shift as we close 2023. While challenges persist, especially in terms of mortgage affordability, the market’s resilience suggests a balanced playing field for buyers and sellers as we move into the new year.