Asking prices fall, although in line with seasonal trends

Asking prices of  houses coming onto the market during the last month was 1.2% down on the month before, according to a new report from Rightmove.

However, the firm suggests that this fall is completely in line with trends seen over recent years and has little to do with the recent Brexit vote.

Falls

Figures from the report suggest that the biggest decline in house prices was seen in London and the South East. Values here were down 2.6% and 2% respectively. As a result, annual increases have fallen to 4.1%.

Miles Shipside, Rightmove director and housing market analyst Miles Shipside, noted, ‘the average fall in new seller asking prices at this time of year has been 1.2% over the last six years, so this month’s fall is exactly in line with the long-term average. The largest price falls at this time of year were 2% and 1.3% in 2014 and 2010, with the smallest fall being 0.8% in post-election boosted 2015.’[1]

‘With the timing of Brexit uncertainty coinciding with both the seasonal slowdown and continuing the lull following the first quarter buy-to-let surge, 2016 will be a year of two halves. How different they are will depend upon the strength of the traditional market rebound this autumn, especially at the upper end of the market and within the London commuter belt, which currently appear to be the most subdued,’ he continued.[1]

Data from the report suggests that homes with four or more bedrooms are taking the longest to sell. These types of property currently take an average of 74 days from being advertised to actually selling. What’s more, these properties have seen the biggest drop in new seller prices, falling by 2.9%.

Asking prices value, although in line with season

Increases

In contrast, first-time buyers with two bedrooms or less, alongside second-stepper properties, were found to be performing the best.

Properties in the South had the largest jump in the number of days taken to sell during the last two months.

Shipside continued by saying, ‘many prospective buyers take a summer break from home-hunting and those who come to market at this quieter time of year tend to price more aggressively. This summer is also affected by both Brexit uncertainty and the aftermath of the buy-to-let rush in March to beat the stamp duty deadline.’[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2016/8/asking-prices-dip–but-its-seasonal-not-brexit-says-rightmove

[2] https://www.propertyinvestortoday.co.uk/breaking-news/2016/8/asking-prices-in-the-uk-fall-sharply