- Average asking prices fell 1.1% this month, or £4,159, to £366,999.
- Annual growth slowed to 7.2% in November from 7.8%, according to Rightmove.
- The market turned ‘more abruptly and less smoothly than we expected’
According to property portal Rightmove, average asking prices for homes fell by more than £4,000 between October and November as more sellers accepted lower offers.
The median price of a newly listed home for sale this month fell 1.1%, or £4,159, to £366,999, Rightmove reports, while year-on-year growth slowed to 7.2% from 7.8%.
It says the housing market is recovering from the pandemic boom at a faster pace than expected.
The real estate website emphasized that the monthly decline “should not be viewed in isolation as a negative figure” as it was in line with pre-pandemic averages.
However, he acknowledged that the mini-budget-driven sharp rise in borrowing costs hastened the slowdown in market activity that had already begun over the summer.
The surge in mortgage rates that followed this mini-budget has accelerated the slowdown in market activity that had already begun in the summer, Rightmove notes.
“The frenetic market of the last two years has turned into a more normal market more abruptly and less smoothly than we expected,” said Tim Bannister of Rightmove.
He added that sellers are increasingly aware of the need to set competitive prices in order to sell in the current market, which is “much more price sensitive” after two years of “buying hype”.
“Homeowners who enter the market in the last few months of the year tend to lower prices to attract buyers in the lead-up to Christmas, and we hear from agents that both existing and new sellers understand what they need to sell in the current market. set competitive prices,” Bannister said.
According to Rightmove, a larger number of existing sellers whose properties were already on the market and not sold were willing to lower their asking prices in order to achieve a faster sale.
The share of unsold real estate with declining prices increased only slightly above pre-pandemic levels to 8% in October this year, although this is double from 4% in October last year.
Buyer demand remains 4% above pre-pandemic levels, but has fallen 20% since last October.
Rightmove stated that “it’s clear we’re back in a much more price-sensitive housing market after two years of buying frenzy” with a “bidding war” erupting among buyers.
First-time property buyers continue to be the sector most affected, with year-on-year demand down 26%, while second step demand down 17% and at the top of the ladder down 15%.
“The era of historically low interest rates and a buying frenzy is over, which could give way to a more normal market, offering potential opportunities for those who have been delaying entering the frenzy for the past two years,” Bannister said.
While he refrained from predicting how much prices could fall next year as we wait to see what the Autumn Statement will bring, he said it is certain “that the exceptional rise in prices over the past two years is not sustainable against economic headwinds and a growing economy.” availability restrictions.
Monthly price drops were seen across all regions, with the biggest drops seen in Wales, Scotland and London.
However, real estate agents said that there was no excess of unsold properties, and the number of people wishing to buy still exceeded the number of houses for sale by a third.
According to Rightmove, this helped prevent any price drop “more than normal at this time of year”.
All regions saw monthly price drops, with Wales, Scotland and London seeing the biggest declines of 3%, 2.2% and 1.9% respectively.
The East of England saw the smallest drop in average asking prices last month, at just 0.1%, followed by the East Midlands, where prices fell 0.6%.
Real estate agent Chestertons said: “Buyers are rushing to complete the purchase to keep the fixed mortgage rates they have already negotiated with lenders.
“Meanwhile, many potential sellers are waiting for more economic and political certainty before listing their property for sale, which will cause a shortage of new properties coming on the market in the New Year.”
The annual rate of house price growth slowed to 7.2% this month.
Credit: www.thisismoney.co.uk /