2024 Could Be The Time To Move As Prices Start To Climb
The last couple of years have been tumultuous for the property market, with house prices declining and mortgage rates soaring. However, the tide could be turning, with property values beginning to creep up, which means more homeowners may be tempted to put their residence up for sale. 2023 - a year of falling values Lots of people who were thinking about moving home last year are likely to have put off their decision, as house prices dropped for nine months out of 12. By August 2023, they were 4.5 per cent lower than they were the previous August, according to the Halifax House Price Index. While things improved in the autumn, house prices were still below what they were the previous year. As prices kept dropping, this deterred vendors from putting their house or flat on the market, diminishing housing stock. This has eventually started to push values up, as demand for houses exceeds supply, which is why values are now increasing. Changes set to occur in 2024 This is why 2024 has started off well for sellers, with values 2.5 per cent higher than they were in January 2023. They are also the same proportion greater than they were during the previous quarter, and 1.3 per cent higher than in December 2023, which amounts to an average increase of £3,785 over the month. Director of Halifax Mortgages Kim Kinnaird said: “The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market has continued to increase confidence among buyers and sellers. This has resulted in a positive start to 2024’s housing market.” What will happen in the future? Although this is a good sign for the housing market, buyers and sellers have been warned to remain cautious. Interest rates are still higher than they were before, which is making it more challenging for homebuyers to be accepted for, and afford, a loan. At the same time, demand is still greater than supply, which could push prices higher even more. This means both first-time buyers and homemovers can expect to pay more for a new home in the coming months than they did last year. Despite this, Ms Kinnaird stated that values could also potentially fall due to a “backdrop of broader uncertainty in the economic environment”. With this ambiguity, those who are hoping to move up the property ladder may want to consider doing so sooner rather than later. By putting their house up for sale now, they are likely to secure a buyer easily due to the greater demand. At the same time, they can price their home higher than they could have last year, without having to spend much more on their next abode. Having to also factor in the cost of hiring a removal van, solicitors’ fees, conveyancing charges, and stamp duty, as well as rising mortgage rates, homemovers may want to start planning their relocation in case prices begin to rise even more.
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