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Property industry reacts to Rightmove House Price Index
The current state if the UK housing market is proving resilient, with more transactions recorded than many predicted, as more vendors price realistically to help attract potential buyers.
Average new seller asking prices dropped by 1.9%, or £6,966, this month to £355,177, as Christmas approaches and sellers continue to adopt more pricing realism to attract a purchaser.
According to data from Rightmove, new seller average asking prices end the year just 1.1% below a year ago, with sales agreed for the year to date in 2023 just 3% lower than the same period in the more frenetic 2022. Prices in seven out of 11 regions are higher than a year ago.
Industry reactions:
Tom Bill, head of UK residential research at Knight Frank, commented: “It’s not often that November is busier than September in the UK property market but it was this year. The economic backdrop has stabilised in recent weeks and gentle downwards pressure on mortgage rates means that transaction volumes should be higher over the next six months than the last six. The main uncertainty facing the property market has gone from ‘when will the bank rate peak?’ to ‘when will the general election take place?’”
Jeremy Leaf, north London estate agent, said: “These figures are not particularly surprising bearing in mind they reflect asking rather than sale prices and a degree of realism on the part of sellers who are reducing their aspirations if they really want to attract buyers.
“Asking prices are not values but often an agent’s aspirational starting point to marketing. Overall, sales agreed are down as transactions are inevitably taking longer bearing in mind weaker demand and higher base rates. However, recent reductions in mortgage rates, and inflation not rising quite as rapidly, has given the market a bit of a kick when needed.
“Looking forward, the Christmas period is likely to be quieter at least until Boxing day which is always a great time for attracting interest on the portals and although much interest is aspirational, we always find plenty of genuine interest too.”
Josephine Ashby, managing partner of John Bray Estate Agents, commented: “2023 has been an interesting year, with very little straight forward, yet far from the negative market it might have been given the broader economy. Whilst there has been a lower transaction level than the previous few years and some adjustment in values, attractively priced property is selling. Very prime coastal property has held firm and sold well and sensible sellers who are realistic about guide prices are achieving positive results. There is less risk taking and the fluctuation of mortgage rates has made it a bumpy road for some, but as we turn towards 2024, we are hopeful that activity will continue despite a general election.
“Our advice to both buyers and sellers is to be realistic with expectations, it is potentially an easier market for buyers in prime areas with more choice and less pressure. Vendors; get organized, take early interest seriously and above all pitch values at an attractive level from the outset.”
Adam Feather, managing director of Robert Anthony Estate Agents, said: “The latest asking price data reflects the fact that mortgage payments and the cost of living are starting to fall, while wage rises are more than holding their own. Purchasers rae undoubtedly growing in confidence, as we approach the bottom of the market and prices remain broadly stable – at least in short-term.
“Looking ahead, we do not think there will be any major changes as so many homeowners will have to deal with fixed-rate mortgages coming to an end over the next few months, which will inevitably prevent many from making a move.”
Tomer Aboody, director of property lender MT Finance, added: “Market activity has been at a lower level than last year, with a reduced number of property transactions as interest rates continued to rise and buyers found it difficult to budget.
“With many buyers sitting on their hands and waiting for the right opportunities to come along, sellers who are keen to sell have had to reduce their pricing in many instances.
“This trend will likely continue into the new year, although at a lower level potentially as mortgage rates become more affordable and we see an increase in the number of buyers, who will once again find themselves in competition.”
Original article from Property Industry Eye – Marc Da Silva
