House Price Update: Has the property market slowed?
The property market had a more quiet summer season this year, with many people postponing their intentions to move because of the summer vacation period and consistently high mortgage rates. Despite a steady reduction since late July, mortgage rates remain much higher when compared to relatively low levels in previous years.
On average, expected asking prices rise during this time of year, correlating with an increase in homebuyer activity. However, prices have risen by just 0.5% this month to £368,231. This is the lowest October increase since 2008, and it is significantly lower than the common 1.4% rise seen at this time of year.
The average house price for Wales is £239,378, with a -2.6% annual change. The biggest annual change has been in Blaenau Gwent with the average asking price at £133,463, while Cardiff properties are asking for £295,991 on average.
A more moderate seasonal spike in prices indicates that some new home-sellers are reducing their asking price expectations in an industry that property agents describe as among the most cost-sensitive than ever before.
What does this signify if you want to sell your house?
If you’re considering selling your home, the current market conditions indicate that there are indeed motivated buyers available, according to reports from estate agents. However, it’s crucial to set the right initial asking price to prevent the necessity of lowering it at a later stage.
When compared to the same period last year, the volume of agreed home sales is 17% lower. This means that homeowners who haven’t modified their pricing expectations from the epidemic period are having difficulty attracting potential purchasers.
On the other hand, the number of interested purchasers asking about each available home for sale is 8% more than in the pre-pandemic market of 2019. This implies that those wishing to relocate are actively hunting for the ideal home at a fair price. In this circumstance, James Douglas can help you use competitive price methods to attract more attention and find the ideal buyer.
Attract property buyer’s attention right away
According to data from Rightmove, a property stands a 60% higher chance of finding a buyer if it generates interest on the very first day it’s listed, as opposed to homes that don’t receive any inquiries until two weeks after their listing date.
Property professionals frequently advise sellers to attract a potential buyer’s interest by pricing their home competitively from the first day it is listed. The research shows that starting with a high asking price and then lowering it can drastically reduce the chances of a successful sale.
Setting an excessively optimistic asking price presents sellers with a twofold difficulty. For starters, they nearly always have to reduce the price of their home further in the process. And secondly, an overly high starting asking price often turns off potential buyers, making it harder to re-enter the market even after a price decrease.
James Douglas property agents can help you find the right balance to attract your ideal buyer and guide you through the process.
What is the current state of mortgage rates?
Mortgage rates continue their favourable trend, having decreased for 11 consecutive weeks. This has led to an enhancement in buyer affordability when compared to the same period last year.
The recent drops in rates have primarily benefited individuals with more substantial deposits. Conversely, those with smaller deposits, often found further down the housing ladder, are experiencing slower declines in rates.
In comparison to three months ago, the mortgage market has become more stable. This newfound stability gives prospective homebuyers more confidence in the mortgage rates they are likely to obtain, providing them a better knowledge of their possible affordability.
Those looking to purchase a new home in the coming year should start the process from now. Our Sales team can help you gain insights into the current dynamics of the housing market in the area you wish to relocate.
Whether you’re looking at properties for sale or keeping an eye on market trends, know that the appropriate property for you is out there.
Please do not hesitate to contact us if you want to better grasp the market. We are always willing to assist. Good luck with your home search!