Buying a property can be daunting at the best of times, but even more so when the economy and property market are as volatile as they have been in 2022 and 2023. However, while many assume this is grounds to wait until 2024 to buy, you could be missing a trick and your dream property by holding out.

Here are five things to consider when deciding whether or not to buy a property this year or wait until 2024.

1. House prices have already dropped

This could be a surprise to some people, but when you take into account inflation, house prices have already dropped significantly. Property prices started levelling in early 2022 and, despite the usual summer surge, prices remained about the same going into 2023.

According to the Halifax House Price Index, there has been just a 1.9% increase in UK house prices from January 2022 to January 2023. Given that there was a 10.5% rise in the CPI inflation rate in the 12 months to December 2022, this actually signals a drop in house prices given that they stayed mostly the same and haven’t been rising in line with inflation as they should.

By buying in 2023 rather than waiting until 2024, buyers could jump in at the right time and secure a property at a better deal. As house prices aren’t rising at the same rate as inflation, you could get your ideal property at a ‘discounted’ rate.

Waiting until 2024 could result in house prices rising at the same rate of inflation, meaning you could pay more for the same property. This is particularly important to note for first time buyers or those who are upsizing.

2. Lower offers are being made

Considering the current economic climate, people are already starting to make lower offers for properties. This in turn pushes down the final sale price of many properties, meaning that buyers could swoop in and grab a great deal on a property.

This also means that you may be able to secure a better property – perhaps one you wouldn’t normally be able to afford – at a lower price point. A word of warning though: ‘low ball’ offers are unlikely to result in a sale, as the sellers would rather stay put or rent than sell at a price that’s significantly lower than the asking price.

3. A less competitive market

Taking the plunge and buying in 2023 means you can capitalise on a less competitive market, with fewer people buying. Less competition makes the sale a lot smoother, with less chance of fierce bidding wars or being gazumped, meaning you can be in your new home sooner.

4. Mortgage rates are settling down

A big consideration when looking to move house or buy a property is mortgage rates. High mortgage rates often dissuade potential buyers from taking the next step, waiting for rates to settle before committing.

Mortgage rates have already started to settle down. Even if the Bank of England (BoE) increases rates further, as expected, this has already been factored into mortgage rates. There is no need to wait until 2024 for mortgage rates to settle, as it’s already happening. It’s unlikely that rates will return to what they were before for a very long time.

5. Renters should buy sooner rather than later

If you’re currently renting but are in a position to buy a property, doing this sooner rather than later might be to your benefit. While mortgage rates are higher than what they used to be, they are settling down – so it’s much better to start paying off a mortgage than burn away money with rent payments.

Everyone’s financial situations are unique and individuals have been impacted by the cost of living crisis in different ways. It’s essential to seek financial advice before committing to such a big investment.