Date Published 15 December 2023
As we approach the new year, Rightmove offers a glimpse into the 2024 housing market. Recently, a noticeable 1.9% drop in asking prices was observed, surpassing the typical December decline. This equates to a near £7,000 reduction on average-priced homes, indicating a shift towards a more competitive sellers' environment.
This trend, partially driven by an increase in new sellers pricing below the competition, reflects the current transition to a buyers' market. The year concludes with national average asking prices 1.1% lower than the previous year, a testament to market resilience amidst ongoing economic challenges.
Tim Bannister, Rightmove's Director of Property Science, notes, "We're seeing a strategic shift in pricing, with sellers and agents working together to set competitive rates. Despite high mortgage rates challenging buyer affordability in 2023, there's now a sense of calm as we enter 2024."
Surprisingly, sales agreed upon this year are only 13% behind last year's figures, despite 2022's market fervor. While national average asking prices have slightly decreased, regional disparities persist, underlining the importance of local market awareness in pricing strategies.
Interestingly, average mortgage rates have been decreasing for 19 consecutive weeks, fostering optimism for family movers. With more stable mortgage conditions and anticipation of a peak in the Bank of England Base Rate, those looking to upgrade homes may now find it feasible.
Early signs of increased activity in the family mover market are emerging, with a 9% rise in demand for mid-market homes compared to last year. However, the continued participation of first-time buyers remains crucial for market momentum.
As 2024 unfolds, sellers are advised to adopt aggressive pricing strategies to stand out. While the mortgage market is stabilizing, high interest rates may still impact buyer affordability. Rightmove predicts a national average asking price drop of about 1% for the upcoming year.
Bannister concludes, "With more predictable mortgage rates, we anticipate an early 2024 surge in market activity. Our advice for sellers is clear: price attractively from the start to captivate early buyers and streamline the selling process. This strategy should help avoid price reductions and ensure a swift sale in the new year."
