Throughout much of 2021, we have watched the average asking price of a home continue to rise, with huge buyer demand pushing up prices. But even after a demanding Autumn period, the lead-up to Christmas usually means a quieter housing market, impacting asking prices nationwide.
House prices have seen the biggest price drop since January this month, according to data released by Rightmove, with a dip of 0.6% (-£2,044) taking the national average to £342,401.
December is traditionally the quietest month for the property market, with many potential sellers distracted by Christmas festivities and waiting until the New Year to start their seller journey. This allows those who are looking to buy before Christmas to purchase with less competition, with a small window of opportunity opening to land a bargain before the Boxing Day market resurgence.
With the current price lull expected to last until Christmas, buyers who have seen their affordability sorely stretched in 2021 may also benefit by securing a fixed-rate mortgage before the widely anticipated interest rate rise.
Tim Bannister, Rightmove’s Director of Property Data comments: “Despite the soaring property market and consequent shortage of choice of homes for sale for prospective buyers, new sellers have given buyers an early Christmas present by dropping their average asking prices by 0.6%. Sellers who come to market this close to the distractions of Christmas often have a pressing reason to sell, so naturally price more attractively to grab the attention of prospective buyers who may be otherwise occupied. We expect this downward price trend to be relatively short-lived, though sellers who are in a hurry will continue to need to attract buyers for most of December as well. As soon as Christmas Day is out of the way, there’s a boom in people searching for property on Boxing Day, perhaps with time available during the holiday season and a resolve to enjoy their next Christmas in new surroundings. That is likely to push prices higher again and increase the competition from other buyers. Some of those additional buyers will also be new sellers who have held back from launching their property to market until this Boxing Day buyer boom, judging it to be a good time to sell and to move in 2022.”
Rightmove reports that the number of people browsing properties on Rightmove during the post-Christmas Day festive period has been increasing every year, with visits on Boxing Day last year 54% higher than the previous year.
With this immediate post-Christmas Day activity having become the norm, savvy homeowners will have begun getting their homes spruced up ready to sell, with their marketing launch carefully timed to coincide with this wave of new buyers.
In October, Rightmove recorded a 14% increase in the number of homeowners starting the selling process by requesting a property valuation, compared with the same period last year, a sign of building momentum.
Bannister says: “Sellers often wait until January to get their home on the market, but this year agents say that more people are trying to get a head-start on making 2022 their year to move by doing a lot of the prep before the New Year, including having their home ready to market during the Christmas period …. Plus, if they’re able to secure a buyer for their home early in the New Year and they are looking to buy again, it puts them in a powerful position to secure their next property.”
With Christmas fast-approaching, sellers may delay putting their homes onto the market until the New Year. However, as Boxing Day has proven to historically kickstart the busy period of both new homes coming to the market and new buyers searching for their next home, marketing a property before the New Year may be an excellent opportunity for sellers to get ahead of the competition and put themselves in an advantageous position.
Are you thinking of selling your home in the New Year? Contact our team today and find out how you can maximise your property’s potential this holiday season.