"An average drop of 1% in prices reflects our prediction that it’s likely to be another muted, and in parts challenging, year for some buyers and sellers in 2024."
- Rightmove’s property expert, Tim Bannister
Rightmove predicts that average new seller asking prices will be 1% lower nationally by the end of 2024, as the market continues its transition to more normal levels of activity following the post-pandemic period.
Rightmove says motivated sellers are likely to have to price more competitively to secure a buyer in 2024.
The average time for a seller to find a buyer has jumped from 45 days this time last year to 66 days, with those sellers who have been competitive on price able to find a buyer more quickly. Some monthly price falls have been greater than the usual seasonal trends this year.
The level of price reductions has increased during 2023, with 39% of properties now seeing a price reduction during marketing compared to 29% last year, and 34% in 2019.
Buyer demand in the typical first-time buyer sector (two-bedroom and fewer properties) is hardest hit compared to last year due to the impact of higher mortgage rates and a wider affordability squeeze.
Agents report that there will likely need to be an even greater focus on securing first-time buyers for the bottom end of chains in 2024 to help build longer chains, create more sales, and keep transactions moving.
However, the number of available homes for sale has only just increased to pre-pandemic levels and there are no signs of a wave of new listings which would create a glut of homes for sale. With more choice and fewer buyers on the ground, Rightmove it will be those sellers who are willing and able to price temptingly who will attract buyer’s attention.
Rightmove’s property expert, Tim Bannister, said: “This year has been better than many predicted, with no significant signs of forced sellers, lower than expected price falls, and good buyer demand for the right-priced quality properties. However, it has been a challenging change in mindset for some sellers to transition from the frenzied market of the previous few years. The level of sales being agreed is 10% lower than at this time in the more normal market of 2019, so sellers will need to price even more competitively next year to make sure that they secure a buyer.
“We predict a modest average fall of 1% in new seller asking prices next year. This will be felt more keenly in some areas of Great Britain than others. The housing market is made up of thousands of local markets, each with their own unique dynamic of supply and demand. In areas with more discretionary sellers and fewer homes for sale, we may see new seller asking prices remain flat, or even very slightly increase compared to this year.
“In areas where sellers are struggling to attract affordability-stretched buyers or needing to sell quickly due to a change of circumstance, new job opportunity, or strong desire for a lifestyle change, we are likely to see even more competitive pricing.
“An average drop of 1% in prices reflects our prediction that it’s likely to be another muted, and in parts challenging, year for some buyers and sellers in 2024. However, the better than anticipated activity this year has shown that many buyers are still getting on with satisfying their housing needs, and there is considerable opportunity for sellers and their agents to attract these buyers with the right pricing and marketing strategy. This underlying level of good demand at the right price makes it unlikely that we will see a more significant drop in prices next year.”
