Are house prices falling?

Wondering about the current trajectory of house prices? In a nutshell, yes, they have been declining. According to Nationwide's latest data, the average house price experienced a 5.3% drop in the year leading up to August 2023, marking the most significant annual decrease since the post-financial crisis slump in 2009.

Similarly, Halifax's data aligns with this trend, reporting a 4.6% year-on-year price decline, equating to a 1.9% decrease from the previous month.

Notably, Rightmove's August data underscores this pattern, revealing a 1.9% decrease in average asking prices, translating to a substantial ￡7,000 reduction to ￡364,895. This marks the most significant August dip in asking prices since 2018.

Traditionally, the housing market experiences a lull during the summer months, but this August saw a more pronounced drop in asking prices than the typical seasonal fluctuation. This decline is widely attributed to sellers responding to the financial pressure on buyers, stemming from surging mortgage rates and the ongoing cost of living crisis.

Interestingly, despite the lower prices, they haven't been sufficient to stimulate increased buying activity. In fact, the number of sales agreed upon in August registered a decrease compared to the same period four years ago.

It's important to note that while average house prices have generally receded over the past year, they still remain nearly 20% higher than their pre-pandemic levels four years ago.

If you're in the market for a mortgage or have further questions about the evolving real estate landscape, feel free to reach out for assistance. We're here to help you make informed decisions.

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