Rightmove reveals prices are currently 1.3% lower year-on-year
Average new seller asking prices will fall by 1% by the end of 2024, the UK’s largest online real estate property portal has predicted.
Rightmove, in its house price forecast, said sellers would likely have to price more competitively to secure a buyer next year as the property market continues to return to more normal levels of activity post-COVID.
The property listing platform predicted last year that average new seller asking prices would drop by 2% in 2023. Prices are currently 1.3% lower year-on-year, it reported on Monday.
Average asking price for UK home will fall by 1% in 2024, says Rightmove https://t.co/ubbd65aGpq
— The Guardian (@guardian) December 4, 2023
“This year has been better than many predicted, with no significant signs of forced sellers, lower than expected price falls, and good buyer demand for the right-priced quality properties,” said Tim Bannister, director of property science at Rightmove. “However, it has been a challenging change in mindset for some sellers to transition from the frenzied market of the previous few years.
“The level of sales being agreed is 10% lower than at this time in the more normal market of 2019, so sellers will need to price even more competitively next year to make sure that they secure a buyer.
“We predict a modest average fall of 1% in new seller asking prices next year. This will be felt more keenly in some areas of Great Britain than others. The housing market is made up of thousands of local markets, each with their own unique dynamic of supply and demand.”
Bannister added that in areas with more discretionary sellers and fewer homes for sale, new seller asking prices could remain flat, or even very slightly increase compared to this year, while areas where sellers are struggling to attract affordability-stretched buyers or need to sell quickly would likely show even more competitive pricing.
“An average drop of 1% in prices reflects our prediction that it’s likely to be another muted, and in parts challenging, year for some buyers and sellers in 2024,” he added. “However, the better than anticipated activity this year has shown that many buyers are still getting on with satisfying their housing needs, and there is considerable opportunity for sellers and their agents to attract these buyers with the right pricing and marketing strategy. This underlying level of good demand at the right price makes it unlikely that we will see a more significant drop in prices next year.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said the Rightmove forecast was “quite encouraging” considering that Rightmove looks at asking, rather than selling, prices.
“Such a modest change is unlikely to have much bearing on buyers’ intentions one way or the other,” Leaf commented. “Certainly, we have seen over the last month or two, activity has remained fairly consistent despite rocketing interest and inflation rates.
“With mortgage payments and the cost-of-living starting to fall, while wage rises are more than holding their own, this is giving buyers confidence that we are at, or very close to, the bottom and prices are unlikely to change dramatically in the short term at least.
“Looking forward, we don’t expect any significant changes as so many homeowners will have to deal with fixed rate mortgages coming to an end next year, which will inevitably prevent many from making a move.”
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