Are house price rises coming to an end?
House prices have risen for what feels like an eternity, with the average UK home costing a whopping £25,000 more than it did in 2021. Are these increases finally ending? We take a look.
The competitive property market, amplified by the pandemic and the stamp duty holiday, has seen prices skyrocket; Halifax reported a major increase in prices of over £47,000 in the past two years. Increases have, however, begun to slow, with more sellers coming back to the market.
If prices are to fall, the market still needs a large number of sellers to list their properties because, according to Propertymark’s records, 84 new potential buyers registered per agent in March, with a staggering 84% of sold properties going for a value equal to or above that of their initial price tag.
Sellers have always been assured of receiving glamorous offers because they are greatly outnumbered by buyers and prices are not expected to go down while this imbalance remains. Although we saw more sellers than in 2022’s prior months, the average property took 30 days to sell – only a small drop from the previous 33.
Looking into Q3 of this year, prices are expected to rise slightly, with figures ranging from 1-3.5%. There is also the potential of a 3% rise in in 2023, but 2% is more likely through the rest of this year given the smaller monthly increases averaging around 1% so far in 2022.
For prospective first-time buyers looking to make their first step onto the property ladder, the waiting game may have to end soon. Millions in the UK have already been priced out of buying alone and have had to persist with renting or go home to save up, but those who can afford to should buy as soon as possible. No matter how little, prices are going to keep rising through to at least the end of the year, if not beyond.
Granted, competitive mortgages still remain available, but demand means you’ll need to act without hesitation to get the home you want. Interest rates will also be key when it comes to deciding when the best time to buy is, with most first-time buyers willing to wait for rates to drop.
Already on the property ladder? It could also be worthwhile waiting for prices to drop in your area of interest to capitalise on the biggest price difference between where you’re selling and buying.
Looking to move? Want to know how much your house is worth? Use our free online house valuation tool today!