Another crucial aspect impacting the market is mortgage rates. Any fluctuation in these rates can influence buyer affordability and, consequently, demand in the housing sector. It's essential to monitor these rates as they directly impact buyer behaviour.
However, there is a glimmer of optimism as Halifax anticipates a partial recovery in the housing market in 2024. As inflation recedes and financial markets factor in potential cuts to the Bank of England base rate, improvements are expected. With mortgage rates already on the decline, falling below 5% for a typical five-year fixed 75% loan-to-value deal, further reductions are predicted in the coming months.
According to insights from property experts and data analysis by Rightmove, the forecast for 2024 suggests a potential 1% dip in average new seller asking prices nationwide by the end of the year. This projection stems from increased competition among sellers trying to secure buyers in a market returning to more standard levels of activity post-pandemic.
For those contemplating selling their homes in 2024, the key lies in pricing. Current statistics reveal a 10% decrease in the number of sales compared to the more stable market of 2019. Moreover, a significant portion (39%) of properties experienced asking price reductions during marketing in 2023.
The trajectory of UK house prices in 2024 remains uncertain, with conflicting forecasts from leading institutions. The intricate interplay of economic factors, inflation rates, and interest rates will ultimately shape UK housing market.
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