As the festive decorations are packed away and normal routines resume, many people in Durham and the surrounding areas are starting to think about what a 2025 move could look like for them. Rightmove’s latest House Price Index reveals that the national average house price has increased by 1.7% this month, reaching £366,189.
Since experiencing their busiest ever Boxing Day for website traffic and new property listings, we have seen an 11% increase in sellers coming to market compared to this time last year. This means that buyers beginning their property search now will find the highest number of available homes at the start of a year since 2015.
There is a 9% year-on-year increase in buyers contacting offices about properties for sale, while the number of sales agreed over the same period has risen by 11%.
What Happened to House Prices This Month?
This early-year rise in house prices is the biggest increase we have seen at the start of a year since 2020. Additionally, mortgage applications have surged, indicating that many buyers are now assessing their financial options to secure a mortgage.
While the increase in available properties has led to more buyer enquiries and agreed sales, it has also introduced growing competition among sellers trying to attract buyers. As a result, some sellers may find that their initial asking prices were overly ambitious and might need to adjust their expectations to secure a sale.
It is also important to note that average asking prices remain £8,942 below the peak recorded in May 2024, reflecting ongoing affordability challenges for buyers.
What Do the Experts Think?
The year has started with strong market activity, and if this momentum continues, we anticipate a busy spring moving season, which is typically the most active time of year for the housing market.
However, some uncertainties remain, including potential changes to interest rates and the impact of increased stamp duty for many home-movers from 1st April.
“It is crucial to look at the broader market picture. Many buyers are still facing affordability constraints due to high mortgage rates, which limit their borrowing power. First-time buyers, in particular, are navigating reduced government support schemes, increased stamp duty costs from April, and record-high rents, all while trying to save for a deposit.”
“Our early-year data suggests a promising start to 2025. However, sustained market momentum will require Bank Rate cuts to ease mortgage costs. Additional support for first-time buyers would also be beneficial, particularly in higher-priced areas.”
What Could Happen Next?
Looking ahead, 2025 is expected to remain a buyer’s market due to the increased availability of homes and longer average times to secure a buyer. Rightmove’s 2025 housing market forecast provides insights into what to expect in the coming months.
In the near future, all eyes will be on the implications of the upcoming stamp duty changes and the Bank of England’s decisions on interest rates. Mortgage expert Matt Smith comments: “Recent economic news, including high government borrowing costs and better-than-expected inflation figures, shows just how quickly the market mood can shift. While a February interest rate cut remains possible, the outlook beyond that is uncertain. We need to see how the market stabilises before gaining a clearer picture of where rates are headed this year.”
For those considering a move in Durham and the surrounding areas, now is a great time to explore your options. Whether you are buying or selling, our expert team at JW Wood Estate Agents is here to help you navigate the market with confidence.
Adapted from Rightmove
