Asking Prices Of Wellingborough Houses Are Dropping

House prices in Wellingborough have reached some incredible highs over the last couple of years.

The Government’s latest data shows house prices in the UK have risen by 12.4% in the year to date. This was up from a rise of 9.7% in March, illustrating how price appreciation has gained pace.

The devil is in the detail, however. Prices have risen a modest 0.3% in the last month, showing that while there is still room for appreciation, the rate of growth is slowing.

Affordability is a big concern for buyers. Not only is the Bank of England looking to push interest rates to 2% by the end of the year, the ratio of average house prices to average earnings (HPE) currently stands at 7.7– above even the previous peak of 7.5 seen just prior to the 2008 financial crash.

Rising interest rates and inflation at 9.1% (and predicted to go higher), buyer behaviour may change to reflect the increased cost of living.

And we are seeing this in the asking prices of properties currently on the market in Wellingborough.

The lowest average asking price of a property for sale in Wellingborough since the start of 2021 was £213,480 in February of that year.

After an increase of £49,525 (23.2%), this peaked in at £266,097 in April 2022 but has since fallen by £5,521 over the last two months.

Let me be clear, this doesn’t mean house prises have fallen, it just means that the asking prices have dipped. This could be a temporary change or may be an indicator of a market that has peaked and is levelling itself out.

Unemployment remains low, interest rates remain far more modest than the historical average (a whopping 9.24% from Jan 1975 to today) and demand still remains strong.

My inclination is that we will see property prices dip and rise month to month then eventually flattening or showing a gentle rise going into 2023.