Housing market: Average UK asking price has fallen by over £7,000 this month, according to Rightmove data
UK’s property market, often considered a temperature gauge for the nation’s economic health, has seen a notable shift this month.
Newly marketed properties witnessed a 1.9% decrease in their average asking price, taking it to £364,895, down -£7,012, according to Rightmove data.
In Wales, the average house price now stands at £257,000, a monthly change of -1.4%.
These lower asking prices, combined with increasing average earnings and the apparent downward trend of mortgage rates are tentative steps towards improved buyer affordability, although average prices are still £59,000 (19%) higher than in the pre-pandemic market of August 2019
.Behind this substantial price adjustment is a combination of factors.
Summer holidays traditionally bring about a lull in the market. Added to this, the highest Bank of England Base Rate since 2008 and concerns about inflation have sellers revising their price expectations.
Though a 1.9% decrease may sound dramatic, it’s essential to view it within a broader context.
Tim Bannister, Rightmove’s Director of Property Science, said: “There are still significant challenges in saving up enough for a deposit and affording higher mortgage payments, however would-be buyers are now likely to see greater property choice in their area and therefore a home more likely to suit their needs compared to during the pandemic.”
“But while there is more choice there is no glut of properties for sale, with the number of available properties still lower than at this time in 2019 and homes still selling more quickly, with the average time to find a buyer now 55 days compared to 61 days in 2019.”
Tim said that while a 1.9% drop in just one month seems dramatic, “it’s in part an expected seasonal drop as sellers coming to market realise that they have to compromise on price due to the traditionally quieter summer holiday period.”
“Agents report that correctly priced homes in many areas are still attracting multiple prospective buyers competing to secure them, so if buyers see a home that could be for them and they can afford it, they may still need to act fast rather than sitting back.”
The current average five-year fixed mortgage rate stands at 5.81%, a notable decrease from 6.08% just three weeks prior.
The property transaction landscape, however, presents a mixed bag.
The overall number of sales being agreed upon is down by 15% compared to 2019.
A closer look reveals that the typical first-time buyer market of two-bedroom or fewer properties fares better, down by only 10%.
Spiralling rents, which have surged by 33% since 2019, make purchasing an appealing option for those who can afford to.
Rightmove’s data suggests a prudent approach for sellers: get the pricing right from the outset.
Homes correctly priced from the beginning take, on average, just 27 days to find a buyer.
In contrast, overpriced properties that later require price reductions linger on the market for an average of 66 days.
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