What’s going to happen to house prices in 2023? After a few years of record-high prices and a looming recession, the landscape of the property market is looking more uncertain than it has in recent years.
Here are Rightmove’s predictions for the property market this year.
The housing market in 2022
According to Rightmove, the average asking price for a home in 2022 was £359,137, a 5.6% increase from 2021.
The housing market in England in 2022 has been characterized by an increase in house prices and demand for houses at the beginning of the year.
However, as the year progressed, the Bank of England began to gradually increase interest rates in an effort to curb inflation and stabilize the economy. This led to a cooling of the housing market, as potential buyers became more cautious about taking on large mortgage debts at higher interest rates.
What is going to happen to house prices in 2023?
It’s hard to predict how the housing market is going to progress but it is safe to assume that we are going to see drops in housing prices soon. Rightmove anticipates a conservative 2% reduction in house prices in 2023.
However, other sources expect housing prices to decline by much more. Savills expects a 10% reduction in house prices in 2023. Zoopla reported an expected reduction of 5% in the coming year for at least 20% of house listings.
All these predictions are based on the rising interest rates triggered by the inflation rates we have seen in 2022. Furthermore, it remains to be seen if the economy can recover from the COVID pandemic and ongoing war in Ukraine.
House prices in Andover and Whitchurch in 2023?
It is even harder to predict house prices for a specific area, especially in a volatile economy such as the current one. The closest prediction for housing prices in Andover and Whitchurch is Savill’s prediction for housing prices in Southeast England.
Savills predicts an 11% decrease in house prices in Southeast England in 2023, slightly higher than the national average of 10%.
It’s important to note that despite the decline we expect to see this year, an increase in house prices is expected in the long term. Savills predicts a 3% increase in house prices in Southeast England over the next five years.
For expert advice about the property market in Andover or Whitchurch, contact the Graham & Co team today.