New seller asking prices to fall in 2024

Its director of property science innovation Tim Bannister said: “It’s likely to be another muted year for the market, however the better than anticipated activity this year has shown that many buyers are still getting on with satisfying their housing needs.  

“We predict a modest average one percent fall in new seller asking prices in 2024. The underlying level of good demand at the right price makes it unlikely that we will see a more significant drop in prices next year.” 

Based on forecasting for the coming year from the online real estate agency, it comes as levels of sales have been 10% lower than at this time in 2019. It’s also seen 39% of properties with an asking price reduction during marketing compared to 29% last year and 34% in 2019.  

Meanwhile, the average time for a seller to find a buyer has jumped from 45 days this time last year to 66 days.

Bannister added: “New sellers will need to compete with their cut-price neighbours, and work with their estate agent to start with a competitive price, rather than starting too high and needing to reduce later. Our research shows that pricing right at the outset maximises the initial impact among local buyers and gives new sellers a much greater likelihood of a successful sale.” 

Mortgage rates, meanwhile, have fallen steadily since July – with the average two-year fixed rate now being at 5.52%, while the average five-year rate is 5.11%.

However, while the outlook for mortgage rates has improved and there are signs that the Bank of England base rate has peaked, affordability remains stretched for many homebuyers.