House prices are not as important as many analysts like to suggest! If you are selling, you may get a little less, and if you are buying, you may pay a little less. Equally, if prices rise, you may get more for the home you place on the market, but then the house you buy will cost you more!
However, house prices give a good indicator as to the state of the UK property market. What we really want is stability, and it appears that after years of soaring prices, there is evidence to suggest that the property market is reaching a plateau.
According to the Halifax, average house prices in January 2023 have hardly changed since December 2022, while average house prices are still £5000 higher than in January 2022.*
Price growth and price increase are not the same
What appears to be happening is a dip in growth, which is very different from a dip in prices. It’s no secret that prices have increased a bit too rapidly over the past few years. A softer, slower market is a more stable market. Buying a home is a long-term investment, and slow and steady wins the race! Some analysts shout "crash" like a nervous passenger in the front seat of a speeding car, but now that the market is driving forward at a slower pace, a crash is unlikely.
The law of averages
Many of the figures and stats we hear about are based on averages. It’s important to take these with a rather large pinch of salt! If you are a first-time buyer or looking to move, when you turn on the news and hear the average house price in the UK, you may feel somewhat intimidated, perhaps even frightened! For example, in November 2022, the average price of a property in England was £315,073.** However, there is no substitute for getting online, talking to your agent, and exploring physical viewings to see how far your money can really go!
The market is settling down
Another good sign that the market is settling down is the return of more competitive mortgage interest rates. Many lenders are now offering deals hovering around the 4% mark. Stable house prices and stable lending rates create nicer conditions for settling down in the home you want.
You accept the price, but you love your house
Price is something you must accept when selling or buying. Who knows, you may love the price if it’s right! Ultimately, you are investing your time and emotion in a house that you want to be the best version of your home. House prices in the long term will inevitably rise, and you don’t want to accept anything less than the right home.
To see how much property, you can really get for your money, get in touch.
Halifax*Office for National Statistics**