As we approach the end of the year, the property market is experiencing the usual seasonal lull, with many movers opting to wait for the traditional Boxing Day or post-Christmas “bounce”. In this blog, we’ll delve into the current market trends in line with the latest House Price Index by Rightmove, what we can expect in the coming months within the Harborne and Edgbaston housing market, and how potential sellers can prepare for success in the New Year.
Seasonal Adjustments: December’s Typical Market Slowdown
December is historically a quieter month for the property market, as buyers and sellers shift their focus to the festive season. In line with this trend, new seller asking prices have fallen by 1.7%, or £6,395, to an average of £360,197. This drop is typical for this time of year as sellers adjust their pricing to attract the remaining buyers who are still looking to make a move before Christmas. However, despite the seasonal decline, prices are still 1.4% higher than in December 2023, showing that the market has remained robust throughout the year.
As Christmas approaches, many sellers find that their pricing power diminishes as the market slows. This gives buyers an opportunity to secure properties at more competitive prices. Nonetheless, this temporary dip in prices doesn’t overshadow the fact that the overall trend for the year has been positive, with prices ending the year higher than in 2023.
Looking Ahead: Boxing Day Bounce and Market Predictions for 2025
While December is typically slower, the property market traditionally picks up after Christmas, with many potential buyers and sellers taking action after the festive period. Rightmove’s data shows that Boxing Day has become a key moment in the housing market calendar. In 2023, a record number of new sellers launched their properties onto the market, and buyer demand surged by an impressive 273% between Christmas Day and Boxing Day. This annual uptick in activity is expected to continue in 2024, and many sellers will want to take advantage of the fresh interest that comes with the New Year.
Looking further into 2025, there are reasons to be optimistic. Rightmove forecasts that new seller asking prices will rise by 4% next year, buoyed by anticipated reductions in mortgage rates. These drops in mortgage rates are expected to improve affordability and stimulate market activity. However, there are challenges on the horizon, particularly with the looming stamp-duty deadline set for March 31st, 2025. Buyers and sellers alike are keen to act before the tax changes come into effect.
Market Resilience: Sales and Buyer Demand Remain Strong
Despite the seasonal lull, activity in the market remains stronger than it was at this time last year. The number of sales agreed in December is up by 22% compared to 2023, and new buyer demand has increased by 13%. This ongoing momentum indicates that the property market is in a healthier position than many anticipated, and the post-Christmas period is expected to see further growth in activity.
Challenges Ahead: The Impact of Stamp Duty Changes
One of the major factors to consider for 2025 is the looming changes to stamp duty. As the deadline approaches, some sellers of smaller properties, particularly in higher-priced areas, are looking to complete on their sales transactions before the end of March to avoid paying higher taxes. This has led to a noticeable increase in the number of properties coming to market, especially in areas like London and the South East. However, while this creates an opportunity for buyers, the situation also presents challenges, particularly for those in more expensive regions who will face higher stamp duty costs.
Rightmove’s data reveals that the stamp duty changes will have the most significant impact on properties in the higher price ranges. For first-time buyers, however, the market remains strong, and homes priced below the £300,000 threshold are expected to see the least disruption from the changes.
Conclusion: Preparing for the Year Ahead
As we look ahead to 2025, the property market is set to experience another busy year, driven by improving affordability due to falling mortgage rates and the traditional post-Christmas surge in activity. Sellers who are ready to make a move will find plenty of interest from buyers, particularly in the first-time buyer sector, where demand remains strong.
For those considering selling their property, now is a great time to start planning. A valuation now or early in January will help position you for the busy period that typically begins after Boxing Day. Taking the right steps to ensure your property is correctly priced and presented will put you in a strong position to make the most of the market’s momentum in 2025.
Contact Us Today
Are you interested to know the sale value of your property? We offer a no-obligation market appraisal. Simply visit https://mchugohomes.co.uk/value-my-property or contact us at movinghome@mchugohomes.co.uk for more information.
Let us help you navigate the property market in 2025.
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