The end of December 2022 saw a forth reduction in a row making the housing market the most stable it's been since 2008.
Nationwide details the average house prices coming to £262,068 in December after a monthly fall of 0.1%, a slim fall compared to November's 1.4% drop, with both of these contributing to an annual rise of 2.8% by the end of the year.
In this slowdown, all regions saw declines in economic output, and the gap between the weakest and strongest regions is the smallest it has been since this survey began collecting data in 1974.
Chief economist Robert Gardner says: “The recent weakness in mortgage applications may, in part, represent an early seasonal slowdown. With the chaotic backdrop and elevated mortgage rates in recent months, it wouldn’t be surprising if potential buyers have opted to wait until the New Year to see how mortgage rates evolve before deciding to step into the market.
“Longer-term interest rates, which underpin mortgage pricing, have returned towards the levels prevailing before the mini-Budget. If sustained, this should feed through to mortgage rates and help improve the affordability position for potential buyers, as will solid rates of income growth.
“But the main factor that would help achieve a relatively soft landing (especially for house prices) is if forced selling can be avoided, and there are good reasons to be optimistic on that front. Most forecasters expect the unemployment rate to rise towards 5% in the years ahead – a significant increase, but this would still be low by historic standards.”
In the first quarter of 1989 the difference between the best and worst performing regions was 53.3%, the largest gap recorded, where as today, the margin is only 3.3%.
Between the start of 2020 and the end of 2022, the average price of a detattched house, which is the best performing property type, went up by almost £78,00, a whole 26% rise. Where as flats, the worst performing property type, saw only a £23,000, a 13.4% rise Nationwide also detailed.
