After a turbulent last few months in 2022, most sold homes saw their prices drop in the final quarter of 2022.
As a result, the average home price increased by 6.5 percent from May 2021 to December 2022, the lowest annual growth rate since May 2021.
When compared to the 8.3% increase that occurred the year before, when the pandemic’s boost to the market was still fuelling moves and prices, this is a significant slowdown.
In addition, it is anticipated that there will be further single-digit price falls in the first half of 2023. But thanks to a big jump in home values from 2020 to mid-2022, these modest price falls will do little to dent the equity most homeowners have gained over the long-term.
What’s causing house prices to fall?
In comparison to the previous quarter, the number of enquiries sent to estate agents decreased by 50% in the last quarter of 2022.
Buyers have now gained the ability to drive some bargains as there are fewer buyers on the market and sellers are less certain about being able to achieve a sale.
They’re now getting an average of 3% to 4% off asking prices originally set by sellers. However, it appears that discounts will remain at this level in the foreseeable future, and bigger discounts in the coming months are not to be expected.