Property Price Update: November 2022
For November, the average price of recently listed houses fell by 1.1% (-£4,159) to £366,999 across the UK. As is customary in November, sellers are raising their asking prices in an effort to attract buyers in the final months of the year. Such monthly price decline should not be taken as a warning sign on its own because it is directly in agreement with the average 1.1% Rightmove measured in November during the previous years to the pandemic, from 2015 to 2019. There are indications that more existing sellers, whose homes were already listed but unsold, are prepared to heed their agents’ advice and lower their asking prices in order to facilitate a faster sale.
In Wales, the average house sale is £261,644 with a monthly change of -3.0% with an average of 43 days to sell. There has also been a slight decrease in properties coming available to the market for rent to 9.3% in Wales, compared to the 10% last month in October. Although the rental demand still very much outweighs the supply.
“Although there are many unanswered questions at the moment, it is clear that the remarkable price growth of the last two years cannot continue in the face of the current economic challenges and tightening affordability standards. We’re finding from agents that both new and experienced sellers recognize that to sell in the existing economy, they have to price competitively. Due to bidding battles, many agents claimed they had to throw out the book on property valuation during the market frantic period. However, since the market has calmed, getting the price right the first time has become even more important to ensure a rapid sale.”Tim Bannister Rightmove’s Director of Property Science
Understanding the numerous factors currently in play is necessary for future predictions of the housing market. The spectre of interest rates remaining high amongst the cost of living pressures, as well as the effect in recent months of higher mortgage borrowing costs on accessibility, will perhaps put a substantial downturn on house prices in the months to come. Although the stamp duty/land tax reductions, the lack of available homes for sale, and a strong labour industry could possibly continue to encourage house prices.
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