Today I want to chat about Lancaster Price Predictions. It’s always a difficult subject as nobody has a crystal ball to truly predict the future. What we do have are some expert economists and of course, the carefully considered opinions of the Office for Budget Responsibility.
In his Autumn Statement, the Chancellor pledged to face the economic storm, as he announced widespread spending cuts and tax rises to tackle inflation and escalating mortgage costs.
The graph above highlights that In the short term GDP is likely to shrink by 1.4% in 2023 but then, due to the new measures being taken, is expected to grow by 9% by the end of 2027. The graph also clearly shows how this affects property prices.
As you can see the average property has increased in value by 9% this year. Prices started to really level out in the late Summer and there is evidence that prices have started to slowly dip. However, it is not as doom and gloom as people first think.
If you bought your home 12 months ago, prices have on average increased by 9%. We can see that on the graph above. If you look at 2023, prices are only predicted to drop by 6%, and 3% in 2024. They are then expected to slowly increase as GDP goes back up. The two are quite closely linked. You can also see that mortgage rates are expected to remain above 4% by 2027.
What does this mean for you?
- If you bought your home more than 12 months ago, you will not be directly affected by house prices dipping. Your home should still be worth what you paid for it and in many instances even more.
- If you bought your home in the past 12 months and have benefitted from a low-interest rate, you too should also be relatively happy, as your lower mortgage rate will also benefit you and if you don’t intend to move again for a few years, it doesn’t really matter anyway.
- If you are thinking of buying now, there are fewer buyers in the market place which means you won’t have to make wild offers over the asking price like buyers have been over the past couple of years. You might be paying more in your mortgage payments, however, if you look at the extra cost over 5 years v the savings made by not paying over the asking price, it also helps to offset the increase in your mortgage payment.
Property Price growth is expected to resume in 2025. Some buyers will choose to wait to see what happens, and some will choose to buy now. If you are buying and selling in the same market, house values do become somewhat irrelevant and for many, buying a Lancaster home is still cheaper than renting one! One thing we do know is that we have registered 107 new buyers already this month, so Lancaster people still want to move and own their own property!
If you have any questions about this article or wonder how the changing market affects your property price, please get in touch. At JDG we are here to help.
Thanks for reading
Michelle x