Will House Prices Fall in Gravesend in 2024?
As we step into the new year, the question on everyone's mind is, "What will happen to house prices in 2024?" In this post, we look at the national and local market trends and offer insights into the potential trajectory of asking prices for the coming year.
Market Overview:
The housing market in 2023 surpassed expectations with lower-than-anticipated drops in asking prices across the UK and sustained demand from prospective homebuyers. However, the rise in mortgage and interest rates posed challenges to the affordability of many movers. At the time of writing the Bank of England has announced its holding the base rate for the third time at 5.25%. Interest rate stability is exciting for the housing market, helping to re-build confidence for home buyers when it comes to taking on debt.
Forecast for 2024:
Looking ahead to 2024, Rightmove anticipate a 1% decrease in average new seller asking prices nationally by the year's end. Rightmove’s Tim Bannister, emphasises that while it may be another subdued year for the market, the sustained activity in 2023 indicates that buyers are actively pursuing their housing needs. Tim states, "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."
We anticipate the same for Gravesham next year. This year despite reduced stock levels the number of sold properties has increased when compared to 2019 with 69% of stock bought to market in 2023 being sold. With reduced mortgage rates going into 2024 we expect this trend to continue. Rightmove makes reference to ‘asking’ prices which are fundamentally different to a ‘sold’ price. As long as homes are marketed at the correct price, we anticipate good interest from buyers and could even see over asking price offers.
Regional Dynamics - GRAVESHAM:
It needs to be recognised that the housing market comprises numerous local markets, each with its unique supply and demand dynamics. With Gravesham seeing nearly a 10% reduction in homes for sale, we anticipate prices remaining steady or even experiencing a slight increase compared to the regional market.
Given the variety of local markets in Gravesham we would encourage anyone considering a move to have a valuation undertaken by a professional, with knowledge of the market and the properties’ unique location rather than make life decisions on the basis of a computer algorithm.
Pricing Strategy for Sellers:
Sellers need to adopt competitive pricing strategies, working with their estate agent to start with a competitive price, rather than starting too high and needing to reduce later.
Mortgage Market:
Average mortgage rates have steadily declined since July, and at time of writing (Dec 2023), inflation has fallen to 4.7%. The gradual decline in the inflation rate, as well as the 3 consecutive holds on the base rate, has given lenders the confidence to reduce mortgage rates which sees the market leading five-year fixed-rate deal reduce by 39 basis points to 4.39%. This provides homebuyers with more stability and certainty. However, affordability remains a concern, as the Bank of England suggests that interest rates are likely to remain elevated throughout 2024.
Conclusion:
Whether you are buying, selling or renting a home, staying informed and adopting strategic pricing approaches will be key in navigating this evolving property landscape. As we navigate the uncertainties of 2024, we remain committed to providing accurate insights and guidance to our clients.