House prices continued to fall this month, extending the longest streak of month-on-month drops in prices since the 2008 financial crisis.
The National Building Society confirmed that the average price of the houses that were sold during the month dropped by 0.1%. However, this is a less steep decline than we have seen in recent months.
This is the fourth month in a row that prices have dropped, making it the longest streak of month-on-month drops since 2008. Nationwide said the average home sold for £262,068 during December, with the average price in the North West at £208,600, which is up by 6% compared to this time last year.
READ MORE: Banks: How to deposit cash and cheques as Lloyds, Halifax and more shut branches
Nationwide’s chief economist, Robert Gardner, said: “December saw a further sharp slowdown in annual house price growth to 2.8%, from 4.4% in November. Prices fell by 0.1% month-on-month – a much smaller decline than in the previous couple of months.
“However, December also marked the fourth consecutive monthly price fall – the worst run since 2008, which left prices 2.5% lower than their August peak.”
However, Gardner said there was reason for anyone looking to sell their house to be optimistic for 2023, as interest rates on mortgages are likely to ease back.
He said: “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.
“Moreover, household balance sheets remain in good shape with significant protection from higher borrowing costs, at least for a period, with around 85% of mortgage balances on fixed interest rates.”
Life through a new lens. We are Curiously. Follow us on TikTok, Instagram, Facebook and Twitter.
Matthew Thompson, head of sales at estate agent Chestertons, said that the market had been supported by “seasoned buyers” in December. He added: “Meanwhile, first-time-buyers and second steppers have been more hesitant and decided to observe how the market might develop in the new year.”
“We also noted that, due to the festive season, December has seen fewer appraisals compared to previous months. This will lead to fewer properties coming onto the market during the first quarter of 2023, which will inevitably lead to a more limited choice and more competitive market conditions for buyers.”
READ NEXT:
-
Experts urge people not to put Amazon Echo in bedrooms
-
Jamie Redknapp fans divided after star's latest picture
-
Diabetes: Symptoms and warning signs on your skin that suggest high blood sugar
-
Gogglebox's Ellie Warner supported as she shares Christmas update with boyfriend Nat
-
Ant McPartlin's seven-figure home in cosy part of England
