House asking prices have seen the biggest drop since 2018
This week it was unveiled by a leading property organisation that seller asking prices have reduced by 1.9% in August.
Often during the summer months asking prices for houses fail to reduce by a significant amount, however this month prices have fallen by £7,012, meaning asking prices have hit an average of £364,895 in August – the biggest drop experienced within the last five years.
According to data published by Rightmove, the average asking prices are now £8,000 or 2% lower than when they reached their peak in May as a result of the soaring cost of living. However, prices are still 19% higher than in August 2019.
In addition, the number of sales agreed is now 15% lower than this time in 2019, as higher mortgage rates mean that some have had to pause their plans to relocate for the time being.
Examining the data more closely, the typical first-time buyer sector of two-bedroom and fewer properties is down by a mere 10%, while the number of buyers sending enquiries to agents about houses for sale remains 1% above 2019’s pre-pandemic levels.
A factor in preventing more significant drops, according to Rightmove, is due to the number of available properties for sale remaining historically constrained and is currently 10% lower than in 2019.
Commenting on the findings, Tim Bannister, director of property science at Rightmove, 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.
‘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.’
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