For the right house, priced correctly and in the right location, there is huge interest. We are still seeing multiple offers and sealed bid situations, although paradoxically we are also now starting to see price reductions creeping in on a few properties. Whilst this might indicate a cooling in the market, as seen recently with Rightmove recording their first asking price decrease this year, we see it as a reflection of a normal summer market with a more measured approach from buyers.
Some key findings of the August Rightmove House Price Index highlights:
• Price of property coming to the market sees first fall this year, down 1.3% in the month to £365,173 (-£4,795):
o Prices usually drop in August, and this 1.3% drop is on a par with the average August correction over the past ten years
• Demand appears to be softening and supply constraints are improving, but there is still a massive imbalance:
o Buyer enquiries to agents are down 4% on the hot market of 2021, but remain 20% higher than 2019
o New listings are up by 12% on the same period last year, but are still 6% down on 2019, while available stock is down 39% on 2019
The sixth consecutive interest rate rise will of course be a factor for would-be home buyers, however, disparity between supply and demand continues to keep house prices resilient.
The rentals market continues to be stock-starved. As with the sales market the lack of supply and increased demand means that asking prices remain incredibly resilient. The more transient workforce has come back to the rentals market, which has put added pressure on demand for smaller apartments and houses. We are experiencing an increase in commercial premises applying for Change of Use, giving local residents mixed-use space. This is adding to the rental stock locally and still keeping the HIgh Street alive.
As ever, if you need any help with selling, renting, buying, commercial or agricultural property, we would be delighted to help. Contact your nearest branch today.
Photo by Isaac Smith on Unsplash
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