Predicting the Landscape of housing prices in 2024 - Fraser & Co

PREDICTING THE LANDSCAPE OF HOUSING PRICES IN 2024



The housing market has defied expectations this year, showcasing resilience with moderate declines in asking prices and sustained demand for well-priced homes. Nonetheless,
the surge in mortgage and interest rates has strained the affordability of prospective homebuyers, prompting speculation about the trajectory of house prices in 2024.

 

A year ago, our forecast anticipated a 2% drop in average new seller asking prices for 2023. Currently, prices are down 1.3% year-on-year, with the average asking price for a home
in Great Britain hovering just above £362,000. The pivotal question now is whether asking prices will experience further declines in 2024.

 

As the housing market gradually returns to more conventional levels of activity post-pandemic, Rightmoves prediction suggests a 1% national decrease in average new seller asking prices
y the end of 2024. This projection stems from a comprehensive analysis incorporating whole-market data, a house price predictive model utilizing vast amounts of supply, demand,
and pricing data, insights from estate agents, and input from a panel of Rightmove experts.

 

The housing market is a complex tapestry of local markets, each with its own supply and demand dynamics. The projected decline in new seller asking prices will likely have varying impacts
across different regions of Great Britain. In areas with limited homes for sale, prices may remain steady or even experience slight increases compared to the current year. For those planning
to sell in 2024, strategic pricing will be paramount.

 

The current pace of agreed-upon sales is 10% lower than the more stable market conditions of 2019. Additionally, there has been a notable increase in properties with asking price reductions during marketing,
rising from 29% last year to 39%. The average time for a seller to secure a buyer has extended from 45 to 66 days over the past year. Competitive pricing has proven crucial for sellers seeking a faster transaction.

 

Mortgage rates have exhibited a steady decline since July, offering home-movers greater stability and predictability in their financing compared to the volatile conditions of a year ago. The average two-year
fixed rate now stands at 5.52%, while the average five-year rate is 5.11%. Although these rates are higher than recent historic lows, the mortgage market is notably more stable.

 

FRASER & CO: YOUR KEY TO INFORMED PROPERTY VALUATION

 

In the dynamic real estate landscape of 2024, understanding your property’s true value is crucial, whether for letting or selling. Fraser & Co stands out as the go-to choice for homeowners seeking accurate
and personalised property valuations. With a proven track record in navigating local market nuances, Fraser & Co’s expert team employs a comprehensive analysis of supply, demand, and pricing data.
This ensures precise property assessments that align with current and anticipated market trends.

 

Strategic pricing is more vital than ever, and Fraser & Co’s forward-looking approach helps homeowners position their properties competitively. Their commitment goes beyond numbers,
offering valuable insights and collaborative expertise to set optimal asking prices for those selling in 2024.

 

For landlords, Fraser & Co’s valuations provide a detailed understanding of rental potential, empowering informed decision-making for attracting tenants and optimizing returns. As mortgage rates stabilize and
market choices expand, a precise property value understanding becomes a strategic advantage. Fraser & Co’s accuracy, coupled with a client-centric approach, makes them the ideal partner for homeowners
seeking to maximize property value in 2024’s ever-evolving real estate scenario.