Home buyers have an “opportune moment” to negotiate a bargain in 2024 after house prices fall.
Widespread expectations of a major fall in values has sparked hope that properties could become more affordable for first-time buyers.
But soaring mortgage rates mean the housing ladder will still be far out of reach even if prices drop. But there could be a small window of opportunity as mortgage rates start to come down.
So when should you buy?
When will house prices hit rock bottom?
The Centre for Economics and Business Research, a think tank, expects house prices will fall by between 8pc and 10pc over the next year.
Karl Thompson, of CEBR, said: “We expect the housing market will bottom out at the end of 2023 and early 2024.”
After this point, CEBR expects that mortgage rates will fall back relatively quickly.
“Housing market activity [will get] moving again, making early 2024 a more affordable and likely financially wise time for prospective buyers to make their move,” Mr Thompson said.
Falling house prices mean the cost of a typical home will drop from five times average household disposable income to 4.2 times in 2024, Mr Thompson said.
“That would be the lowest ratio since 2015, marking a particularly opportune moment to enter the market.”