To help explain the state of the property market for those looking to sell, the team of experts at www.onlinemortgageadvisor.co.uk have outlined the situation and their advice for sellers.
Why are house prices falling?
As the latest house price data indicates, September’s fiscal event was the trigger for house prices beginning to fall. The announcement of a series of tax cuts and borrowing caused increased worry about the future financial stability of the UK, leading to the value of the pound plummeting and interest rates hitting the roof.
Following this, many lenders increased their mortgage rates or pulled their deals altogether. When combined with the ongoing cost-of-living crisis, it’s no wonder that prospective buyers felt more hesitant about purchasing a new property and therefore demand dropped, leading to house prices sinking in response.
What does this mean for homeowners?
For homeowners looking to sell their current property, the recent change in house prices means that there is a risk of their property selling for less than before. That being said, this is by no means a guarantee; with the right advice from property experts, it’s still very much possible to sell your home for the same price that you would’ve done a year ago.
What’s more, now that average house prices have lowered, some prospective buyers might see this as a prime opportunity to go house hunting, increasing interest in your property.
What will happen with house prices over the next two years?
We do expect house prices to continue to fall, by up to 8% in 2023. This is as a result of the continuing lack of demand for properties, thanks to recent mortgage rate rises. What’s more, we expect this trend to continue in 2024, with prices expected to rise again in 2025.
While prices are falling, this will not be a severe crash like that which has been seen in the past, and the market is expected to recover by 2025.
Should you wait to sell your property?
It’s understandable that house price drops can cause concern among homeowners, as to whether now is the right time to sell. That being said, our advice is that now could be the best time to take the plunge, with the right advice and support. Average house prices are not expected to rise again until 2025, so waiting could mean the value of your home is reduced further in the coming months.
The key is to consult with experienced estate agents, who will be able to advise you on the best marketing strategy to ensure that your home is sold at the best price possible. When it comes to buying a new property to move to, we’d recommend seeking the support of an experienced mortgage advisor.
By receiving expert advice and support throughout both the selling and buying process, you’ll ensure that you’re getting the best results possible, whether that’s earning a profit, or managing to upsize to a bigger and better home for the same price as your last.