First-time buyers take the lead as house prices set to dip

House prices in England and Wales look set to fall by 3.6% during the first quarter of 2024, according to new data.

The comparison website Reallymoving reveals property prices will fall from £323,594 in  2023 to £311,936 in the first quarter of 2024.

The website says the economic doom and gloom of 2023 looks set to improve with mortgage rates easing.

More downward movement in house prices

According to the report, annual house price growth is also at -3.6%, meaning house prices are currently £11,500 lower than a year ago.

Rob Houghton, founder and chief executive officer of Reallymoving, said: “Based on sales agreed at the end of last year we can expect to see more downward movement in house prices at the start of 2024, but probably not for long.

“There’s a good deal of pent-up demand from movers who held off last year and we’re already seeing much higher demand for conveyancing quote services.

“It’s been painful, but many buyers have now adjusted to higher borrowing costs and if mortgage rates continue to fall steadily, as the traditional spring buying window opens up I expect we’ll see significantly more buyers making the decision to enter the market.”

First time buyer volumes are up

Mr Houghton adds many first-time buyers are now entering the market.

He said: “First Time Buyer volumes are up notably in January, now accounting for 61% of all home movers.

“Many more will be weighing up their options, trying to time their move perfectly to benefit from falling mortgage rates and lower house prices.

“The market can start to heat up again quite quickly, so I’d advise buyers hoping to move this spring to plan ahead now by speaking with a mortgage broker and applying for an agreement in principle, whilst keeping a watchful eye on the market for further rate falls.”

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