Due to gloomy property market news this year, many people are unsure what their next move should be – buy or sell now or wait until 2024. We Buy Any Home has assessed the state of play to help you stay informed about the Sheffield housing market in September 2023.
Are house prices going up or down in Sheffield?
Two of the country’s biggest lenders have released their latest house price data, and the findings make for less than pleasant reading. August 2023 saw the sharpest annual fall in house prices since 2009. Halifax and Nationwide, two of the country’s biggest mortgage lenders, offer slightly different figures for the price drop: 4.6% and 5.3%, respectively. It means the price tag of the average UK property has been slashed by about £14,000.
Keen observers are not surprised by the latest drop in house prices. But why has it happened?
Off the back of the Bank of England hiking interest rates once again, mortgages are currently less affordable than in previous years. As a result, there’s less demand for house ownership, and it has caused average house prices to fall. Besides just high mortgage interest rates, purchasing power is down due to inflation. It’s currently harder for people to qualify for a mortgage.
To put the level of demand into perspective, mortgage approvals dropped by 10% from June to July, according to the Bank of England. Ordinarily, July is the most popular time to buy a house, but this year, fewer transactions took place that month. After assessing market trends, property company Zoopla has estimated that annual sales will have been the lowest since 2012 once this year closes out.
While the underlying narrative is one of uncertainty, there’s more to the story in Sheffield. You’ll be pleased to hear that properties sold in Sheffield are fetching 10% more than they did last year. What’s more, the sold price is up 21% compared to the 2020 peak, according to Rightmove.
Are house prices likely to drop again?
Forecasters have speculated whether this year’s changes spell a correction or a future collapse of the housing market. Nobody knows which theory will prove to be true, but it’s almost guaranteed that the Bank of England will increase its base rate again.
What does that mean for house prices? Another bump to the base rate, which has been increased 14 times since December 2021, will make mortgages more costly. For example, the average 2-year fixed-rate mortgage is north of 6.2% this month and could go higher in accordance with the base rate.
The appetite for homeownership is likely to remain low until mortgage rates become more affordable. Therefore, house prices will continue to fall all over the country.
Should I buy a house now or wait until 2024?
If you want to buy a home, you might look at the housing market news cycle and scratch your head at what to do. Is now the right time to buy, or should you keep your cards close to your chest and wait it out?
The truth is that everyone’s situation is different, so don’t be put off buying because the news is gloomy. If you’re a first-time buyer, the current state of play may favour you. The lower demand may make it easier for you to negotiate a lower price for your dream home. Plus, as a first-time buyer, you will pay less stamp duty and may be eligible for a cheaper mortgage deal.
Is it possible that 2024 will be a better time to buy a house? The economy could be in a healthy place by then with more wage growth and lower interest rates, which will make it easier for you to get on the property ladder. Unfortunately, there’s no way to predict with any certainty.
If you have your eyes set on owning a home and would rather not wait until 2024, consider using a mortgage advisor in Sheffield. They will help you to make an informed decision based on your financial situation. You can also look into what help is available to first-time buyers. The government currently offers the First Home scheme, which provides a discount on new-build houses. First-time buyers can also take advantage of a 5% deposit enabled by the Mortgage Guarantee scheme.
There’s a lesson all prospective buyers can take away from the decrease in house prices this year. It’s to buy smart. It means buying a property that is likely to appreciate year-on-year regardless of any market upheaval. The ideal property would be in a desirable area with good schools and amenities nearby. The house itself would have features like a large garden and driveway. Obviously, these types of homes are not always the most affordable, but they will probably prove to be a better investment than a flat or a terraced house in Sheffield.
Should I sell my house in Sheffield now or in 2024?
There’s never a perfect time to sell your house in Sheffield. Perhaps you’ve seen the house price drop and think now is the best time to sell before your biggest asset loses more value. Or maybe you’re one of 100,000 people coming off a fixed rate this month and fear that your mortgage will no longer be affordable. Whatever your reason for considering a sale, take your time to decide.
Nobody knows what the market will look like in 2024. If you need to sell your home, it’s best not to wait. The problem is that there’s a lack of demand for housing in some parts of Sheffield at the moment. So, depending on where you live, you may struggle to find a buyer. That’s where We Buy Any Home can help. Our experts can buy your home from you in as little as 7 days with no fees. We buy every size and type of property in Sheffield and can even rent the property to you after buying it. Discover how you can sell your house fast in Sheffield with We Buy Any Home.