Property Market Update: November 2022

December is here and 2022 is almost over. Three prime ministers, months of economic uncertainty, and trade unions striking up and down the country for the right to a fair wage.

It’s been quite the year. But how does the property market fare?

It seems our industry has withstood the most destructive effects of ex-Prime Minister Liz Truss’s October Mini Budget. Despite rising interest rates and a Cost of Living crisis that refuses to budge, the fallout has been subdued. Asking prices are not plummeting beyond the annual 1.1% drop usually recorded in the Novembers of pre-pandemic years (2015-19). Some properties are being repriced - but not by much.

Suffice to say, we are now in the transitional stages between a Seller’s Market and a Buyer’s Market. The pandemic days of yesteryear, where property prices boomed and asking prices were all but guaranteed, are over. But opportunities are still readily available for the clued-up homeowner.

Let’s take a deeper dive into how house prices have changed this year.

Property prices and asking prices

In August, the average UK house price was recorded by Halifax as £294,260. During this time, over 40% of homesellers were exceeding their asking price, selling their properties for much more than they anticipated.

In November however, Halifax revealed that the average house price had fallen to £285,579. This constitutes as the biggest drop since June 2020 - the month before a Stamp Duty Holiday was announced by then-chancellor, Rishi Sunak.

While this might seem alarming, it hasn’t caused havoc on the market. Rightmove notes that the average price of properties coming to market dipped by 1.1% in November. Traditionally, sales wind down in the festive months and sellers must price more competitively. This 1.1% decrease is in line with pre-pandemic levels.

The pandemic boom wasn’t going to last forever. And while the Mini Budget has caused the bubble to burst in an unforeseen way, it hasn’t caused the crash that some homeowners feared.

We’re now seeing a restrained return to a more competitive, buyer’s market. The “market has lost significant momentum” says Nationwide’s Chief Economist, Robert Gardner, “but a relatively soft landing is possible.”

So if you’re a homeseller, what should you do?

During the market boom, many homesellers enjoyed the fruits of blazing bidding wars, but we are now moving into a more traditional, price-sensitive market.

But this doesn’t mean you can’t sell your home for an excellent price - thanks to the strong growth in house prices over recent years, sellers still have more wiggle room to negotiate a strong asking price.

However, it’s more important than ever to price your property right the first time in order to secure a quick sale. Price reductions are on the rise, and you don’t want your property listing to slip into obscurity.

Listen to the advice of your best local estate agents. Their market expertise, and experience in selling properties like yours, will prove invaluable in this transitional period. And always know you’re working with the best by comparing local agents with a data-driven tool like GetAgent’s.

Mortgages and interest rates

A decade and a half of historically low interest rates is at an end. The economic turmoil from the Mini Budget can still be felt in the mortgage market. While the market itself has somewhat calmed, interest rates for new packages remain high.

Affordability is challenged across the UK. Fueled by inflation, the Cost of Living Crisis, combined with high interest rates, has put household finances under considerable strain.

But it’s not all doom and gloom. We should see rates begin to stabilise and mortgage availability begin to rise once more in the new year.

Homeowners - saddle up!

As the pandemic has taught us, no one really knows what’s round the corner. But there’s no denying that times are tough.

That’s why it’s never been more important to rely on the facts when you make decisions regarding your largest financial asset. In an era of advanced data tracking technology, there are now more ways than ever to keep tabs on your home.

Developed specifically for the curious homeowner, My Property Tracker is a free online dashboard that lets you stay up to date on all the changes to your property and local area. Monitor changes in your property’s value, check recently sold properties, and review recently submitted planning permission applications - all in one place.

To get started, get a free online valuation. It only takes a few minutes.