Property Market Predictions for 2024
What will happen in the property market in 2024? This article gives an indication of the predictions and potential changes that may happen in the coming year.
Cast your mind back to the property market in mid-2020. The world was in a state of total disarray, and your thoughts were most likely distracted with all things pandemic.
But for those of us in the property industry, some wild predictions were flying around about how the property market would be impacted by the lockdowns and the economic impact of the pandemic. Some were suggesting that there would be a 30% drop in property values in 2020. 30%! That would wipe out most homeowners' equity in one fell swoop, and for those of us who saw this prediction, it would be fair to say it was more than a little unnerving.
So, what happened in the housing market surprised almost all of the economists who were supposed to be able to predict these things accurately.
The housing market didn't drop like a rock in the ocean; it, in fact, did the exact opposite. And perhaps the only people who could see that coming were the estate agents - why? Because we were answering calls and emails from prospective buyers. We were trying to figure out ways to show properties and handle key releases for those who could complete their sales.
Irrespective of the pandemic, buyers had an appetite to buy, which had a knock-on effect on sellers who had been convinced by the media that selling their property was a lost cause. They realised that this was not the case and, in fact, there were lots of new buyers. Properties sold quickly, which meant that prices started to rise. The economist's prediction was completely wrong.
So, with that in mind, how can we predict what will happen in the property market in 2024? There is no crystal ball and no guarantee that any prediction will be accurate, but there is some merit in looking to the future to see what may be coming.
The housing market during 2023 was better than expected. Property prices did slow down, but there are still buyers, and financing is still available, meaning that sales are still happening despite a slowdown. There has been a higher level of price reductions seen in 2023, which, when the market has steadied somewhat, is to be expected. Those properties were valued based on a rapid increase in value, and as that increase has levelled out, those properties were no longer priced in line with the market. This is not necessarily a 'crash' but a re-evaluation of the market at the time.
However, looking to the year ahead, the rising interest rates will stretch the available monthly budget of the average householder. We could see an increase in slightly more distressed sales at the lower end of the market, where the cost of living is simply too high. This could result in cheaper properties coming to the market to attract a quick sale.
Will asking prices fall in 2024?
In short, yes, probably, but only a little. However, this is more of a return to regular market activity rather than the frantic behaviour we have seen over the last few years. There will likely be a drop of 1- 3% in property values over the next year or so.
It has been suggested that, whilst the market will resettle and reduce slightly in 2024, things will recover in 2025. This is due mainly to the increase in interest rates, making the cost of borrowing higher, which will hopefully correct itself as inflation reduces over the next 12 - 18 months.
Ultimately, the housing market is fluid and ever-changing, and property values will increase and decrease based on the likelihood of finding a buyer. If there are buyers still looking to buy, properties still for sale and finance available to pay for the transaction, then the market will hold, and as a result, property prices will stay strong.
Accurately pricing your property will be the key if you want to sell your home in 2024. You need an agent with their finger on the pulse and innovative technology that enables them to read the market and guide you effectively on the potential value of your home.
By Design is a network of leading independent estate agents with exclusive access to revolutionary technology to accurately read the market and sell homes for the highest possible prices. Your first step is to have your home valued, and there are three ways that you can do this.
An instant valuation - Calculate by a computer algorithm using previous sales data, which can vary. Perfect if you're just curious.
Valuation Plus - You can add pictures and tell us your improvements. We will then review this using our expert knowledge of the current market conditions and send you a report in 24 hours. Perfect if you might move in the next year but are not ready for us to meet you.
A face-to-face valuation - We visit you at your home and discuss your improvements and plans for moving in person. Using our expert knowledge, we'll provide a price and marketing plan to achieve your best price. Perfect if you're looking to move in the next few months.
If you are ready to get the ball rolling, contact us today.
