It’s fair to say that when it comes to house prices, the past five years have been a financial rollercoaster. We saw house prices rocket post-pandemic, with the housing market doing a 180 in 2023, with one of the worst years in nearly three decades. But what’s next? Here, the experts at Shortland Horne forecast our predictions for 2024 and what the housing market will look like.
Will the housing market return to normal?
We anticipate the market will begin its recovery in 2024, as interest rates ease and affordability starts to improve – although things will move slowly, don’t expect change overnight.
However, please remember that the economy remains unpredictable – we’re still living in a world of uncertainty.
What factors impact the housing market?
Mortgage rates
It’s no secret that last year mortgage rates went wild, climbing to a historic high and reaching their most expensive levels since 2000 – of course an interest rate of nearly eight per cent in some cases, would put buyers off purchasing a new home.
The good news for the housing market is, since rates peaked in October, they’ve started to slowly (albeit very slowly) decrease – and although mortgage rates are difficult to predict, it’s generally anticipated that they will continue to ease as the year progresses.
Cost of living
In line with rising mortgage rates, inflation and energy bills also rocked in 2022 and 2023, with house buyers feeling the pinch. However, inflation started to ease throughout 2023 and as we look forward to 2024, the cost of living is only going to get better – with moving house becoming a more attractive and achievable option.
Sustainability and Green Living
Sustainability is becoming a priority for many buyers and this is reflected in the housing market. Demand is shifting, as we see a growing trend in buyers looking for green spaces and homes with eco-friendly features.
Will the cost of houses fall in 2024?
While house prices will remain elevated, it’s thought that houses will fall between two and four per cent in 2024. However, a crash is not expected, with some experts predicting the year will end with higher prices than now.
Is now a good time to buy a house?
Buyers’ affordability improving and mortgage rates flattening out puts buyers in a very strong position. And with houses not being snapped up quite so quickly, the current housing market provides an opportunity for buyers to take their time and negotiate on price.
Is now a good time to sell your home?
Honestly, if you’re looking at selling your house this year – and are certain you want to put it on the market – then don’t wait around for things to change in 2024, because you’ll be disappointed. Whether you put it on today or in six months, as a seller, we don’t predict you’ll see much change.
At the moment, your decision to sell your home should be based on personal circumstances, like the need to move to a bigger property – rather than the state of the current housing market.
If you’re thinking about selling your house, then get in touch with a local estate agent. At Shortland Horne, we can advise you on average sales figures in your area, demand for a property like yours and what price to put your home on the market for.
A quick note for sellers, the time for a seller to find a buyer is currently 66 days. If you’re looking for a faster sale, then price it competitively.
Are you looking to sell your home this year?
If you’re thinking about putting your home on the market then contact your local estate agents at Shortland Horne. Located in Coventry, our undeniable knowledge of the Midlands means that we can ensure your property is priced competitively, with our friendly team of experts on hand to guide you through every step of the selling process. Contact Shortland Horne today.