Downturn? Maybe, but viewings are UP on last December!

Rightmove forecasts average asking prices will drop two per cent in 2023 - meaning they will remain higher than after the busy home-moving period of 2021. 

And it says that despite inflation and interest rate rises, numbers of viewings so far this month are actually up on December 2021.

This year asking prices in Great Britain rose 5.6 per cent to an average of £359,137. This was almost £17,000 higher than in 2021, when prices increased by 6.3 per cent.

The portal says one of the main drivers of price growth over the past two years has been the imbalance of supply and demand, with far more people looking to move than there were homes available for sale. 

And in a more settled housing market, it anticipates buyers will have the time and space to make sure they find the right home for them. 

As a result of this, it believes the time it takes to sell increasing to a more ‘normal’ housing market, of around 60 days. 

Rightmove’s Tim Bannister says: “After two and a half years of frenetic activity, it’s easy to forget that having multiple bidders immediately lining up to buy your home was the exception rather than the norm in pre-pandemic years, and there will be a period of readjustment for home-movers as properties take longer to find the right buyer.” 

As the portal’s forecast is based on a national average, it says prices in some pockets will outperform others. 

It says: “For instance, price growth in an area could vary from street to street depending on the types of property available, the desirability of the location, and buyer affordability.”

It continues: “After the uncertainty brought about by interest rate rises and high inflation, we’re seeing signs that some buyers are ready to get started with their home moves as we head into the New Year.”

It says that so far in December views of homes for sale on Rightmove are up 11 per cent when compared to the same period in 2021, suggesting that 2023 moves are on the cards for those who are able to do so. 

Bannister adds: “We’re heading towards a more even balance between supply and demand next year, but we don’t expect more significant price falls in 2023. This is reflected in our prediction of a relatively modest average fall of two per cent next year.”