Our Blog

Are House Prices Falling Posted: 2nd September 2022
img

Ever since the pandemic hit back in March 2020, there has been much debate around whether house prices are going to fall. In 2021, we saw the busiest ever home-buying rush leading to record breaking rises in property values. The momentum has continued until today.

Since December, inflation, the cost of living and interest rates have all risen. But how will this affect house prices?

The market today is less frantic than it was back in 2021, but demand is still just as high. We have seen no signs of the market slowing down – apart from the seasonal summer slowdown, but things are once again picking up. We are still seeing a lot of buyers for each property for sale, and this is preventing house prices from falling.

Historically, there is a slow climb in asking prices between January and June, and a drop when schools break up and people go on their holidays. However, as we hit the autumn, market prices rise again as people focus on the winter, Christmas and the next year ahead. As we move into November and December, prices fall again as people are distracted by the upcoming festivities and expense of Christmas.

House prices fell slightly in August this year according to Rightmove – but this has happened every year for the last ten years so it’s no indicator of the wider picture. However, the autumn months could see further rises as demand is still outweighing demand which has been the key driver for rising house prices. Rising energy bills, the cost of living, rising interest rates looming…these could have an impact on the number of buyers looking for a new home between now and December but so far we haven’t seen the impact.

At present, the average price for a first-time buyer apartment is £224,091 according to Rightmove. For a three to four bedroom home the average price is £338,757. For homes with more than five bedrooms, the average price is £665,304. However, there are regional variations and here in East Renfrewshire prices show no signs of slowing down as the overriding driver of house prices and high demand is the range of high achieving schools and colleges in the area. Although nationally buyers have widened their search area, in East Renfrewshire people who are looking to start a family want to do so close to the range of schools at primary level and not have to move into the area further down the line.

If you’re considering buying your first a home our advice is to move now, and not to wait. Interest rates will rise in the next few months so it’s better to secure a good mortgage deal sooner rather than later. In addition, rents are rising and according to Zoopla it is £200 cheaper to pay a mortgage on a 2.5% deal, rather than rent – and still less if interest rates hit 4%.

For home movers, autumn is a great time to sell your home as there are more buyers thinking about moving. What’s more you will be in your home by the New Year.
Talk to us to arrange a free property appraisal.


Whatever your reason for moving; whether it's for extra space, to downsize or you may simply have found your dream home, Nicol can help. Our knowledge of the local property market helps us develop a marketing plan that's right for you and your property.
We want our clients to be delighted with the service we provide. Listening to your needs and understanding your requirements is our starting point. To find out more about our approach to selling homes, download our comprehensive Guide to Selling your Property here.
If you are planning on selling your home, contact Nicol Estate Agents today for an appraisal of your property. Our Managing Director Douglas Nicol and Sales Manager Daniel Cohen carry out hundreds of market appraisals every year, giving them an intimate and unparalleled knowledge of the property market in Glasgow, from city centre apartments to family homes and building plots. We will talk to you about the property market in your area, compare sales evidence, local demand for similar properties, outline our tailored marketing plan and provide details of our sales support strategy right through to completion.