House prices are not as concrete as many analysts like to suggest. Often if you are selling, you may get a little less, and if you are buying, you may pay a little less. Equally, if prices rise, you may get a little more for the home you place on the market, but then the house you buy may cost you more.
However, house prices give a good indicator as to the state of the UK property market. What we are keen to see is stability, and it appears that after years of soaring prices, and the uncertainty of last year, there is evidence to suggest that the property market is calming.
According to the Halifax, average house prices in January 2023 have hardly changed since December 2022 and are still £5000 higher than in January 2022.*
Price growth and price increase are not the same
What appears to be happening is a dip in growth, which is very different from a dip in prices. It’s no secret that prices have increased rapidly over the past few years. A softer, slower market is a more stable market. Buying a home is a long-term investment, and slow and steady often wins the race.
The law of averages
Many of the figures and stats we hear about are based on averages. It’s important to take these as such. It’s no wonder if you are a first-time buyer or looking to move, when you turn on the news and hear the average house price in the UK, you may feel somewhat intimidated. However, there is no substitute for getting online, talking to your agent, and exploring physical viewings to see how far your money can go.
The market is settling down
Another good sign that the market is settling down is the return of more competitive mortgage interest rates. Stable house prices and stable lending rates create calmer conditions for settling down in the home you want.
You accept the price, but you love your house
Price is something you will most likely need to accept when selling or buying. Ultimately, you are investing your time and emotion in a house that you want to be the best version of your home. House prices in the long term will inevitably rise and fall, and you don’t want to accept anything less than the right home.
To see how much property, you can really get for your money, get in touch.
Halifax*Office for National Statistics**
