December Update: Falling House Prices and Market Slowdown
We’re coming to the end of 2022, and it’s been an interesting year for property owners. From interest rate increases to market drops, we’ve felt some changes in the latter part of the year.
Since our last property update, we’ve seen newly listed properties fall by 2.1% (via Rightmove) at the start of December – a larger than usual price drop from this point in the year.
In this blog, we’re looking at the recent changes since the start of November and what you can do to protect your property as we move into 2023. Whether you’re looking to buy, sell, or just want to know the latest news, keep reading.
Scroll down to find out what the latest December property trends are.
December 2022 Property Trends
December 2022 has begun with another 2.1% fall in newly listed property prices. The average asking price in November was £366,999, and in December this figure dropped to £359,137.
While this might seem like startling news, the average asking price is 5.6% higher than last year’s figure. Property prices tend to drop before Christmas as sellers compete for buyer’s attention in a quieter season.
Also, we’ve seen the annual house price growth slow down to 4.7% this month. This rate has dropped from 8.2% in October, and this trend is present across the whole of the UK – apart from the north-east areas.
However, the larger drops this year do represent a short-term reaction to the economic actions seen previously in the year – such as the reduction of available mortgage products and unexpected mortgage rate rises.
What Will Happen In 2023?
After continual price drops and interest rate rises, many of us are understandably looking to 2023 for some different news.
Rightmove have predicted an overall drop of 2% in average asking prices for the year ahead. This prediction comes from their forecast of ‘a more normal market’ as ‘economic factors continue to soften’.
But what about interest rates? The MPC (Bank of England’s monetary policy committee) is due to release another half-point base rate increase in the next week or so. Pair this increase with the standard Christmas slowdown and we can see further market softening is on the way.
Trust Experts To Assist Your Move
Planning for your property’s future is always important. But don’t walk the path alone – the London property experts at Allen Goldstein are here to help you figure out your unique property journey.
From bespoke advice to professional property management, we cover all aspects of the buying, selling, and rental processes.
Get in touch online today. Or visit the team in our office from Monday to Friday. Saturdays are available with a prior appointment. Email us at enquiries@allengoldstein.com