Should I Sell My House Now Or Wait Till 2024?
Homeowners contemplating selling often deliberate the big question – should I wait or dive into the market now? With house prices fluctuating, deciding the optimal timing is crucial but challenging. 2024 could bring a more stable environment. However, delaying risks missing your window if the market shifts sooner. Weighing up the pros and cons of selling now versus postponing to 2024 can indicate which option may maximise your sales return.
Evaluating the Current Market
To determine if an immediate sale makes sense, assessing the latest market signals is advisable:
- Are average sold prices still rising, static or falling locally? Price momentum indicates if the peak has passed.
- How do average timescales between listing and sale compare year-on-year? Faster sales signal strong demand.
- How do quoted asking prices relate to the amounts properties sell for? High achievable values favour current sales.
- Are properties selling close to the asking price or do discounts still occur? Scope for reductions may suggest holding on.
- How do current quoted mortgage rates compare to last year’s deals? Rising rates reduce affordability.
- Is consumer confidence high or deteriorating based on surveys? Confidence fuels activity.
- Are vendor numbers and viewing levels still healthy or declining? Thin demand hints at delaying.
Gauging the balance of power between supply and demand guides decisions on optimal timing.
Find My House Value
To assess your current property value as a potential seller, key options to find estimated valuations include:
Online Instant Valuations:
- Useful starting point but lacks local insight.
- Automated algorithm results based solely on the address.
- Give ballpark figures to benchmark against.
Local Estate Agent Valuation:
- Incorporates agent’s experience and views of the local area.
- Considers condition, enhancements and unique selling points.
- Accounts for typical buyer budgets and mortgage lending criteria.
- Draw instant value estimates based on similar sold prices nearby.
- Allow specific property attributes and finishings to be factored in.
- Some sites offer more sophisticated valuation calculators.
Formal Surveyor Valuation:
- Detailed inspection assessing building structure and components.
- Considers potential faults, defects, repairs needed and build costs.
- Provides a current valuation and likely resale value.
Registered Valuer Report:
- Legally recognised Red Book valuation for specific purposes.
- Required for securing financial lending based on equity.
- Detailed financial justification provided.
Using multiple valuation sources allows cross-referencing to form an accurate house price estimate.
Factors Influencing Price Trends in 2023
When projecting if home values will rise or fall in 2023, key influences to monitor include:
- The Bank of England base rate trajectory and impact on mortgage rates. Further rises are expected to dampen demand.
- Whether higher inflation prompts greater moves by the Bank to cool the economy.
- How labour market conditions evolve – higher unemployment could dent prices.
- Energy costs and the wider cost-of-living crisis weighing on household budgets.
- Consumer confidence levels as higher costs potentially kerb spending.
- Global economic headwinds like lingering pandemic impacts and the Ukraine conflict.
- Housebuilding levels and whether supply can increase to match demand.
- Government measures to support the housing market if prices destabilise.
- Returns available from other asset classes influencing investment demand.
Ongoing uncertainty means agility to adapt to developing trends will be important for sellers planning around potential movements in 2023.
Potential Benefits of Selling Sooner
Valid arguments for selling in the current climate rather than waiting include:
- Taking advantage of high values following successive years of strong house price growth.
- Selling while current low mortgage rates are still available before further rises.
- Listing ahead of more sellers entering the market as the peak season approaches.
- Capitalising on any excess pandemic-related demand still lingering in the market.
- Avoiding deeper uncertainty from economic instability potentially increasing later in 2023.
- Getting ahead of any cooling measures introduced by the government if the market overheats.
- Taking a proactive position while buyer competition is still relatively strong.
- Crystalising the increase in your property’s value before economic headwinds firm up.
For motivated sellers, arguments around seizing current opportunities may outweigh reasons to delay.
Potential Case for Waiting Until 2024
Valid reasons why postponing a sale to 2024 could be prudent include:
- Allowing more time for inflation pressures to ease naturally.
- Letting global supply chain disruption settle after pandemic-induced volatility.
- Enabling mortgage rates to stabilise if increases moderate over time.
- Awaiting potential recovery as economic uncertainty hopefully reduces.
- Any post-pandemic boom normalising instead of an inflated market.
- House prices potentially decrease in the near term before recovering.
- Interim risk of over-supply if many vendors sell concurrently.
- Recession impact on employment levels and property demand playing out.
- Time to improve the property’s kerb appeal and marketability.
For risk-averse sellers, sitting tight to let conditions improve may feel like the safest move.
Can I Take Advantage of the Spring Bounce?
The busy spring season traditionally sees an uplift in buyer activity. For sellers, this seasonal trend may assist in achieving a sale:
- New year momentum brings motivated buyers into the market.
- Brightening weather and longer evenings lift buyer enthusiasm.
- Gardens, outdoor spaces and views are showcased at their peak.
- Natural light and warmth within the property increase appeal.
- Parties and celebrations held over the summer increase search urgency.
- Families are keen to move before the new school year.
- Conditions more conducive for viewings.
- Vibrant advertising campaigns run to match increased engagement.
Timely spring listing allows testing the most active phase of the market. Past trends suggest a sales price premium is possible compared to winter.
Should I Avoid Selling in a Recession?
If the UK enters recession during 2023, is this inevitably bad news for sellers? Reasons a downturn may depress sales include:
- Redundancies and job losses damage buyer affordability and security.
- Greater hesitancy in entering commitments like mortgages during instability.
- Constrained lending by banks scales back buyer finance options.
- Consumer confidence dips, leading households to limit major spending.
- Increased mortgage rates if the base rate rises to kerb inflation.
- Downward pressure on prices as demand contracts in a downturn.
However, reasons the impact may be muted:
- Interest rates have room to fall and stimulate demand if a recession bites.
- The government could cut stamp duty to incentivise transactions.
- The existing short supply of property props up prices.
- Motivated buyers will still proceed despite the economy.
- Stronger job security in sectors less vulnerable to recession.
- Savings accumulated by some households sustain purchasing power.
While undoubtedly creating headwinds, recessions do not always trigger dramatic house price corrections if other factors compensate.
Preparing My Property for Sale
If deciding to sell now, preparing thoroughly will maximise appeal:
- Add kerb appeal with exterior tidying, paintwork and planting.
- Remove clutter inside to create a feeling of space and flow.
- Carry out any renovations or repairs needed to show the property at its best.
- Declutter rooms and store excess belongings neatly out of sight.
- Professionally clean the interior and tidy the exterior.
- Rearrange furniture to showcase proportions and balances.
- Fix minor damage like cracked tiles, peeling paint or warped cabinets.
- Install energy-saving features like insulation, LED lighting and thermostats.
- Enhance bathrooms and kitchens cost-effectively if dated.
Presenting the property in the best possible light makes it competitively sale-ready. Small investments in updates and fixes can yield big rewards.
Should I Consider an Auction Sale?
A quicker alternative to selling via a traditional estate agency is the auction:
- Certainty of a sale once the hammer falls if the reserve is met.
- Speed of process compared to normal sales methods.
- Can stipulate a minimum reserve price to avoid under-selling.
- May achieve above market value if competitive bidding takes place.
- Requires setting a guide price with only estimated valuation.
- Buyer has limited ability to negotiate the price post-auction.
- Requires cash buyers or pre-approved finance. -Risk of the sale falling through if the buyer cannot complete the purchase.
Auction suits motivated sellers who prioritise urgency, but carry pricing risks if the reserve is misjudged.
While 2024 may bring greater economic stability, seizing current opportunities could enable maximising the value realised. Weighing up the balance of advantages versus risks suggests proceeding at the right strategic moment in today’s market can still reward proactive sellers. Monitoring indicators and sentiment provides insight into trends. But skilful pricing, competitive presentation, and realistic expectations also enable properties to successfully sell even during uncertain times. The future outlook contains both threats and opportunities in equal measure. However, available data on values indicates that for prepared sellers, hesitation may not automatically lead to greater returns. If you’re contemplating selling your property, it’s also crucial to explore tools and resources to find the house value. Understanding the current market value of your house provides a solid foundation for setting an informed asking price and navigating the selling process effectively.