What will happen to house prices in 2024?

To answer that question, we need to give some context.  Let’s start by recapping on the era affectionately referred to as the ‘race for space’. This was the period immediately after the opening of the High Street after the first 2020 lockdown.  It covered a period of around 18 months and created a completely artificial housing market, the likes of which couldn’t be sustained. This increased demand unnaturally accelerated property price growth.  

For those in the know, higher interest and mortgage rates had been predicted for the latter part of 2022 on in to 2023.  What should have been a slow increase over the course of a 12 to 18 month period, so affordability could adjust accordingly, happened almost overnight.  The ‘mini budget’ caused these events to happen in a much shorter period and sent shockwaves through the market, which understandably created lots of uncertainty.  This nervousness then reduced the number of available homes and consequently the 2023 housing market has seen periods of muted buyer and seller activity, which naturally impacts asking prices. 

What’s stopping prices from free falling?  Simple…. supply!  In our part of Surrey there are just not enough houses, affordable or otherwise, to satisfy demand. This is why, if we market a property in the right location, at the right price, we are still seeing multiple offers and over asking price offers.    Whilst reports in the media continue to try and paint a gloomy picture of the property market, at White & Sons we are seeing a far brighter reality and continue to successfully sell properties in the local area. Having been around for over 200 years – we really do know how to navigate a challenging market! 

So, what of 2024 prices?  There are still good levels of activity, Rightmove reported in their October House Price Index “the number of buyers enquiring to each available home for sale is 8% higher than the more normal market of 2019”.  Reassuringly, first time buyers don’t appear to be put off by the national headlines either and the Government seem keen on supporting them onto the housing ladder.  We have had consecutive weeks of falling average fixed term mortgage rates and lenders are being competitive and innovative with their product offerings. Reports from the Office of National Statistics recently stated that average wage growth in the UK rose above inflation in August for the first time in almost two years and was among the fastest growth rates on records dating back to 2001. 

In a more turbulent market, a tenacious estate agent with the knowledge and experience required to help get you moving has never been more important. If moving is something you are thinking of doing, we would be happy to help.  Get in touch.