Property Market Shows Signs of Rebound Despite December House Price Dip, Notes Zoopla

According to Zoopla, although house prices experienced a slight decline of 0.8% in the year leading up to December, the property market is gaining momentum due to falling mortgage rates. The property portal reports increased participation from both buyers and sellers, with a rise in homes going under offer. Sales agreements have surged by 13% compared to the previous year, showing improvement across all countries and regions. Buyer demand is 12% higher than a year ago, although it remains 13% below the five-year average.

The number of available homes on the market has increased by 22% from last year. Despite these positive indicators, Zoopla emphasizes that it continues to be a buyer's market, with sellers often accepting offers more than 10% below the asking price. The property market's positive start to 2024 is attributed to a rebound in buyer demand and sales following a slower second half of 2023. Zoopla predicts a higher level of sales activity in early 2024, suggesting a potential alignment between buyers and sellers on pricing. While house prices saw the greatest fall in the East of England, analysts at Zoopla argue that further significant price drops are unlikely. Some industry experts, including Knight Frank and RBC Capital Markets, forecast a potential rise in house prices in 2024, citing factors such as rising wages, falling inflation, and mortgage rate reductions.

Source: This is Money - House prices fell in December but market now heating up says Zoopla