The housing market is off to a strong start in 2025, with average asking prices reaching £366,189 in January - a 1.8% increase compared to last year. While the market shows signs of growth, navigating asking prices can feel overwhelming, especially with rising competition among buyers and sellers. Here’s how you can approach it confidently and make informed decisions.
Understand Market Trends
It’s essential to know what’s happening in the market before making a move. January saw the largest price jump at the start of the year since 2020, driven by a record number of sellers entering the market. This means more choices for buyers, but it also means sellers must work harder to stand out.
Be Realistic as a Buyer
If you are a buyer, it’s important to recognise that asking prices are often flexible. With affordability constraints still shaping the market, sellers may be open to offers slightly below their asking price. Focus on properties within your budget and explore areas where prices are more competitive.
Present Your Home Strategically as a Seller
If you’re selling, ensure your property stands out. Buyers now have more choices than they’ve had since 2015, so presentation and a realistic asking price are key. Ensure your home is decluttered and styled with appeal to a broad audience. Highlight key features and consider virtual tours to attract online buyers. Finally, set a realistic asking price based on market trends and be open to negotiation for the best outcome.
Focus on Affordability
Affordability remains a crucial factor in today’s housing market. Mortgage rates can fluctuate, directly impacting what buyers can afford. For buyers, getting pre-approved for a mortgage is essential to understanding your budget and acting confidently when you find the right property. Sellers should also keep affordability in mind, as changing rates influence buyer behaviour and what they’re willing, or able, to pay.
Stay Informed and Flexible
The housing market is dynamic, so staying informed about trends and being flexible in your approach can give you an advantage.
For more information and to discuss your options, get in contact today.
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