What is the forecast for spring 2023?

We all love to talk about it and predict what it will do, but it is ever changing, with significant regional variations.

And the experts don’t always get it right - remember Michael Fish??

At the start of the pandemic in 2020 the Bank of England, like most other experts, predicted house prices could fall by as much as 30% in the face of lockdowns, a shrinking economy, and limited people movement.

Instead, the housing market enjoyed a long hot summer as house values rose by an average 18% between March 2020 and March 2022.?People adapted their lifestyles and sought out space and more rural locations.?The limited supply of houses for sale helped their value increase, whilst low borrowing costs, low unemployment, and low inflation kept buyer confidence high and housing ‘affordable’ for buyers.?

But then came the cold winds and autumnal conditions caused by the war in Ukraine, rising energy bills, high inflation, a cost-of-living crisis, and the disastrous mini budget in late 2022.?

How times have changed.?Is a long cold winter on the way for the UK housing market??Possibly.

House prices are expected to reduce in 2023, but most experts are not predicting a crash.?The portals predict a small reduction in 2023 (Rightmove -2%, Zoopla -5%), and the main lenders predict slightly more than this (Nationwide -5% and Halifax -8%).?The Office for Budget Responsibility forecasts an -8% reduction.?

The important thing for any potential seller to remember is that even if this does happen, house values are only returning to a level last seen in 2021.?Most sellers will still have seen significant rises in the value of their property from when they first bought it.?

If you do need to sell a house in 2023, then the conditions might be a little chillier than last year but if you price your property sensibly and do your own local research there is no reason why you can’t successfully sell it.??Like any good weather forecast, you should always check the local conditions rather than rely on the national forecast. ??A great free tool to use is the propcast tool on The Advisory website.?At a glance you can see if you’re in a ‘hot’ or ‘cold’ market and has some great free advice for how to sell fast.

Chris Hodgkinson, Managing Director of House Buyer Bureau says “We don’t expect house prices to crash in 2023 but we do expect it to take longer for people to sell a house via an estate agent.?There will be fewer buyers who will be looking to drive a harder bargain.?Sellers will need to set sensible asking prices or look for cash buyers if they want to sell quickly.”

Property buying companies like House Buyer Bureau exist to help those sellers who need a guaranteed sale quicker than they could achieve on the open market.?Genuine firms have the cash in the bank to buy property in weeks, not months.?So if speed is a factor, or you just want a discreet, stress-free sale then find out what we could offer you.?You should be aware though, that the offer will be a ‘below-market-value’ offer.