Data from Rightmove shows that asking prices for UK houses have fallen for the second month in a row.
The latest House Price Index shows the price of properties coming to market this month fell by 0.2% (£905) to an average asking price of £371,907, following an £82 decline in June which marked the first drop in asking prices this year.
As a result, the number of sales agreed is now 12% lower than 2019’s more typical market, despite the first five months of 2023 performing better than expected.
Despite the dip in house prices, Rightmove says that demand remains resilient, up 3% on 2019. The report suggests that homes that are correctly priced in line with the local market conditions are still attracting strong interest.
With mortgage costs hitting the highest level for 15 years – the interest rate on a two-year fixed deal reaching 6.66% – the Rightmove report suggests that its agents are seeing some potential movers delaying their decision to buy or sell until things have become more stable.
There are also signs of concern about over-pricing, with properties that need a reduction in asking price being 10% less likely to find a buyer than those priced correctly when first listed.
Tim Bannister, director of property science at Rightmove, said: “The continuing twists and turns of persistent inflation and higher mortgage rates have posed some additional challenges for the market. Agents report that some movers are pausing until there is more certainty that mortgage rates have stabilised, as well as reviewing how higher costs affect their plans. However, there remains a large volume of motivated buyers who can factor rate rises into their budgets and are continuing to enquire about homes for sale, which is keeping the market functioning, albeit now with lower sales levels than at this time in 2019.”
“Sellers who price right the first time, rather than starting with too high an asking price only to reduce later, have a much better chance of attracting one of these motivated buyers, and a good local agent will provide sellers with accurate evidence of prices that are being achieved in their area.”
