Why have house prices fallen this month?
Rightmove’s monthly House Price Index shows that average asking prices of new sellers coming to market have fallen by 1.7% this month, to £360,197.
As the year comes to a close and people focus on getting ready for the festive season, we usually see housing market activity quieten down at this time of year. This also means that we see a trend of house prices falling slightly, as sellers putting their homes up for sale try to attract a buyer before the end of the year.
Our property expert, Tim Bannister, says: “New sellers in December have to work particularly hard to capture the attention of Christmas-party and festivity-distracted buyers, and the 1.7% average monthly fall is a fitting gift for those who are still buying homes rather than presents. Despite this monthly drop, prices have risen by 1.4% compared with this time in 2023, broadly in line with our prediction of a 1% rise in prices this year.”
And we’re continuing to see strong activity in the market as we close out the year, which reflects the growing confidence buyers are feeling about making their moves happen. Sales agreed are up 22%, while the number of buyers enquiring about homes for sale with estate agents is up 13% compared to the same period last year.
What else is happening in the housing market right now?
We’ve seen a rush in activity recently, as movers try to get their purchases pushed through before the looming stamp duty deadline, with thresholds due to change on 1 April 2025. We’re seeing some sellers jump into action – particularly those in higher-priced regions – with a 20% rise in listings for smaller homes in London over the past month.
In terms of house prices, we can often see trends playing out differently in some regions and sectors compared to what’s happening at a national scale. While national average asking prices declined by 1.7% this month, we saw smaller monthly falls in the North West (-0.6%), Scotland (-0.6%) and the South West (-0.4%). And in the more affordable North East, the average price of first-time buyer homes specifically (homes with 2 bedrooms or fewer) actually went up by 1%.
What usually happens over the Christmas period?
Looking to later in the month, we’re becoming increasingly used to seeing a big jump in activity between Christmas Day and Boxing Day, known as the traditional annual ‘bounce’. For instance, in 2023, we saw a soaring 273% lift in visits to Rightmove.
Tim adds: “Each year, our real-time data can pinpoint the exact moment that the turkey is finished, family games run out of steam, mobile devices are picked up, and prospective movers flood onto Rightmove and get their move started. If this year is anything like recent years, those early birds who get their search started the day after the festivities are over are likely to be rewarded with plenty of fresh property choice to consider.”
What areas do Carpenter Surveyors cover for surveys and valuations?
Areas we cover:
Warwickshire, Worcestershire, West Midlands, Staffordshire, Leicestershire, Rutland, Nottinghamshire, Derby, Gloucestershire, Herefordshire, Cotswolds and Northamptonshire.
Get a Quote from Carpenter Surveyors today.