Whilst December is often a slower-than-usual month for the property market as people tend to get themselves ready for the many holidays that take place over the month, the higher-than-average fall in house prices is unusual.
According to Rightmove’s House Price Index, average asking prices for new properties have fallen by 1.9 per cent, higher than the average over the past two decades and worthy of note in yet another rather unusual year for the property market.
Estate agents around Chorlton reported a higher average selling price than the national average, and these statistics in general reflect a market that has been remarkably robust over the past year despite a higher-than-usual slowdown.
There are some takeaways from statistics such as how sellers have reacted to the cost of living crisis and have thus priced their properties more competitively. Without the huge surge of interest seen in 2020-2022, the pendulum has shifted slightly towards buyers controlling the market.
This is timely, as higher mortgage rates have affected affordability, although these rates have been consistently falling as well, to the point that the average five-year fixed rate is a whole percentage point lower than it was six months ago.
This, alongside a reduced expectation in yet another Bank of England Base Rate means that the market has perhaps hit its valley, with an expectation that, Boxing Day bump aside, there will be more sustained interest for buyers over the next year, although not enough to stop prices falling.
Ultimately, Boxing Day and January will be the litmus test for the next year, but given that the higher-than-usual price drop for the national market was still much lower than some expectations, the key takeaway for sellers is to get ready for a quick turnaround in the new year to catch the early bird buyer buzz.
