House prices predicted to fall 2% in next three months
Average house prices are forecast to dip by 2.1% over the next three months (December 2019 to February 2020), according to reallymoving.
The home move services business reckons it can predict property prices because homebuyers register for quotes for services on the site 12 weeks before their purchase completes, enabling it to forecast prices based on the price agreed.
Despite the forecasted drop in the short-term, annual growth remains positive, with average values in February set to be 4.5% higher than in February 2019, at £292,367.
Just two regions of the UK, the East (3.1%) and the North East (0.3%) are expected to see average price rises during the three months to February 2020, with values in the rest of the UK set to see prices decline at the beginning of the year.
Particularly heavy falls are forecast in Wales (-15.4%), Northern Ireland (-5.8%) and Yorkshire & Humber (-5.5%).
London is expected to see prices fall by 3% over the next three months.
Rob Houghton, CEO of reallymoving, said: “Buyers have driven hard bargains on deals agreed during the autumn, as would be expected in the run up to Christmas and considering the wider political circumstances.
“But the market has shown resilience and stability throughout 2019 and as fears of a crash have faded, buyers have adjusted to the ongoing uncertainty and proven themselves keen to get deals done. Encouraged by cheap loans and favourable buying conditions, first time buyers are a strong force in the market, accounting for 54% of all purchases.”