2023: House price forecast
There’s been a lot going on in the housing market this year. We started 2022 with months of record-breaking house price increases, huge levels of demand from buyers, and homes selling more quickly than ever before.
As the year progressed, we started to see the market settle down after an exceptionally busy two years, and were returning to the kind of housing market we’d seen in the years prior to the pandemic. And then interest rates started to increase, and some buyers put their moving plans on hold as mortgage rates also climbed.
So how could the events of 2022 affect the property market next year? Here’s how Rightmove thinks things are looking right now:
What could happen to house prices in 2023?
This year we saw asking prices in Great Britain rise by 5.6%, to an average of £359,137. This was almost £17,000 higher than in 2021, when prices increased by 6.3%.
In 2023, we’re forecasting that average asking prices will drop by 2%, which means prices will still remain higher than they were after the incredibly busy home-moving period of 2021.
So what will this mean where you live?
Our house price forecast is based on a national average, so we expect that prices in some pockets of Great Britain to outperform others. This is because house price changes vary across the country, with lots of smaller, local markets affected in different ways. For instance, price growth in an area could vary from street to street depending on the types of property available, the desirability of the location, and buyer affordability.
Are people still looking to move?
After the uncertainty brought about by interest rate rises and high inflation, we’re seeing signs that some buyers are ready to get started with their home moves as we head into the New Year. This month, views of homes for sale on Rightmove are up 11% when compared to the same period in 2021, suggesting that 2023 moves are on the cards for those who are able to do so.
Our property expert, Tim Bannister, says: “We’re heading towards a more even balance between supply and demand next year, but we don’t expect more significant price falls in 2023. This is reflected in our prediction of a relatively modest average fall of 2% next year.”
Modified article taken in part from an article from:
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Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.