With the average price of a home in Great Britain now over £355,000 the housing market is continuing to return to more normal levels of activity following the frenetic post-pandemic period. 2024 its predicted that average new seller asking prices will be 1% lower nationally by the end of 2024, as competition increases among sellers to find a buyer.

One property expert Tim Bannister says: “It’s likely to be another muted year for the market, however the better than anticipated activity this year has shown that many buyers are still getting on with satisfying their housing needs. We predict a modest average 1% fall in new seller asking prices in 2024. The underlying level of good demand at the right price makes it unlikely that we will see a more significant drop in prices next year.”

Our forecast is based on its whole of market data and house price predictive model using millions of supply, demand and pricing data, along with insights from estate agents and a panel of Rightmove experts.

The housing market is made up of thousands of local markets, each with their own unique dynamic of supply and demand. The predicted fall in new seller asking prices will be felt more keenly in some areas of Great Britain than others. In areas with fewer homes for sale, we may see new seller asking prices remain flat, or even very slightly increase compared to this year.

“In areas where sellers are struggling to attract affordability-stretched buyers, or needing to sell quickly due to a change of circumstance, new job opportunity, or strong desire for a lifestyle change, we are likely to see even more competitive pricing,” says Tim.

For those looking to sell this year, the price is absolutely key

The average time for a seller to find a buyer has jumped from 45 days this time last year, to 66 days now. Home-sellers who have been competitive on price have been able to find a buyer more quickly.

What’s happening with mortgage rates?

Average mortgage rates have now fallen steadily since July, providing home-movers with much more stability and certainty over the type and cost of mortgage offer they are likely to receive, compared with the more volatile mortgage market of this time a year ago.

Though mortgage rates are still high compared to recent historically low levels, the mortgage market is much calmer. Those buyers who had to pause their home-moving plans during the last year may decide the start of this year is the right time to return, now that they can better plan for what they can afford.

However, while the outlook for mortgage rates has improved and there are signs that the Bank of England Base Rate has peaked, affordability remains stretched for many home-buyers. The Bank has indicated that Base Rate cuts are not imminent, and interest rates are likely to remain elevated during 2024, which is likely to continue limiting some home-buyers’ spending power.

If you are thinking about buying or selling this year it is crucial you get the right advice. Seeking the assistance of a good Mortgage Adviser is important. Feel free to get in contact and we will gladly discuss your options.