For many of us we say good riddance to 2022 along with its dramas – the effects of the beginning of the war in Ukraine, the Liz Truss debacle, the return of inflation and higher interest rates.
In some ways, we had become used to the good times, and they were good times, way ahead of historic averages. Once we realise this, then we can get things in perspective. Yes, they might tell us that house prices are falling, but when you look at this in the context of the incredible growth, we have experienced over the past three years, any fall looks to be nothing more than a dip, or a correction.
British property has always proved to be an exceptionally resilient longer-term investment, and 2023 will no doubt turn out to be no more than a slight dent in that continued upward trend. For example, according to the Nationwide, last month, annual house price growth dropped to 2.8%, with a monthly dip of just 0.1%. But remember that this is on the back of a whopping 17.2% increase since the same month in 2020 – just before the pandemic.
The average house price now stands at £281,272, which incidentally is just £5,000 less than the cost of the average property in the USA (Source: Zillow). And in terms of sales agreed, believe it or not, sales in the first week of January were UP nearly 1% on this time last year. (Source TwentyEA).
Do note that some of the healthy sales currently being arranged are by sellers who have decided to modify their price expectation in anticipation of a falling market. This is an important point – it’s almost always better to pitch your asking price ahead of the market early, rather than waiting in hope and then chasing the market down. “Time on market” is the one element that can exert the greatest downward pressure on your price, and we usually find that the best price is achieved when a property is sold soon after coming to market. Your asking price should be positioned to attract buyers and prompt multiple offers at the outset, as it’s this competition between buyers that will secure the best price for you.
It’s also important to look at competing properties near you, including those that may yet need to reduce their price. Maybe those that have been on the market for over a month or so. Don’t aim to match their price – but compete with it. Your property needs to offer the best value available to a discerning buyer base. We’re pretty good at understanding the local market, right here, right now, pitching the right price, strategically, and continuing to secure excellent prices for our clients. If you’re thinking of moving – do please call us. We are your local experts and you might do better than you expect, whatever the market.