The housing market in London is making a comeback after a period of slump, real estate expert Nick Millican comments. House prices in February 2024 fell by only 0.4 percent compared to the previous year.
Currently, the average cost of a home sold in London is £534,000. On average, sellers are now accepting £19,500 less than the asking price, which is a 4.3 percent reduction compared to £25,000 (or 6.1 percent) in November 2023. Nick Millican adds that Croydon experienced the largest increase in house prices year-over-year, growing by a relatively substantial 2.4 percent, putting its average house price at £392,100.
Bromley and Ealing experienced the most significant fall in property prices. Nick Millican believes that a drop in mortgage rates fueled the spring rebound. This, as banks anticipated, the Bank of England would eventually lower the 5.25 percent base rate. The decline in home prices is slowing down, but it is still a market that favors buyers who have a much wider range of properties to choose from.
Although buyer interest is increasing, property companies do not expect house prices to rise more rapidly in the near term. Being a real estate expert, Nick Millican believes that if sellers want to sell and move into a new home in 2024, they will have to be realistic about their asking prices. To take advantage of the improving market situation, they need to have reasonable expectations.
According to the real estate expert, the price remains the primary factor for sellers when trying to find a buyer in today’s market, especially with higher mortgage rates that make it difficult for buyers to purchase homes. Nevertheless, Nick Millican finally states, the difference between the price points of the property and the price expectations of the seller has been greatly reduced. As a result, sellers are more willing to compromise in order to sell their homes promptly.