As of November 2023, the housing market in Great Britain has experienced a notable decline in asking prices. The average asking price for a home is now £362,143, representing a 1.7% decrease compared to the previous month and marking the largest November fall in five years. This decline is attributed to new sellers pricing their properties more competitively, possibly heeding advice from their agents to stand out in the market.

The housing market has transitioned from the extremely busy conditions observed in 2021 and 2022 to a more balanced state between supply and demand. The number of homes listed for sale is now only 1% behind the pre-pandemic 2019 average, allowing buyers more options and time to find suitable homes.

The average house prices in different market sectors have also experienced changes:

• First-time buyers: £223,426 (-0.4% monthly, -0.2% annual)
• Second-steppers: £333,263 (-1.2% monthly, -1.6% annual)
• Top of the ladder: £658,840 (-2.3% monthly, -1.4% annual

Buyers now have more choices, but they are also facing higher mortgage rates compared to previous years. The average 85% loan-to-value (LTV) 5-year fixed mortgage rate is 5.43%, down from 5.95% a year ago but still impacting buyer affordability.

Looking ahead, mortgage rates have continued to edge down, and there are signs of growing confidence among buyers, with sales agreed only 10% behind 2019 levels. The upcoming Autumn Statement on November 22, 2023, is anticipated to have an impact on the market, particularly if there are any major policy announcements.

It's important to note that while there is a 1.7% average price drop nationally, regional variations exist. House prices have decreased since the previous month in every region, but when compared to the same period in 2022, prices have increased in the northern regions of England, Scotland, and Wales.

Additionally, mortgage rates have been gradually decreasing since their peak in July 2023. Buyers are encouraged to monitor current mortgage rates and consider seeking advice from mortgage brokers or advisers to navigate the changing market conditions.

Sourced from Rightmove