Property Price Update: October 2022
As less properties are available for purchase, prices are continuing to rise. This month, the average property price being offered for sale increased by 0.9% (+£3,398) to a new record of £371,158. Given the property market turbulence that accompanied the government’s mini-budget in late September, which was later withdrawn, a significant asking price peak may have seemed surprising, however it will take some time for any influence to manifest itself in increased home prices.
In Wales, the average is £261,644 with a monthly change of 0.8% with an average of 39 days to sell. There has also been a positive upturn where Wales has seen a 10% increase in properties coming available to the market for rent. Although the rental demand still very much outweighs the supply.
- The rapid rise in average mortgage interest rates has caused some would-be home-movers to pause their plans.
- Interest rates change may alter peoples affordability on house prices so different purchasers with more appetite are going for cheaper properties
- The stamp duty and land transaction tax cuts may have helped keep some purchasers motivated to purchase within a certain price range.
Activity levels are still high as long as properties are priced fairly because demand is now greater than supply. Buyers are reportedly hurrying to finalise before their reduced fixed-rate mortgage offers expire, according to agents.
In recent weeks, only 3.1% of agreed-upon sales have gone through, which is comparable to the 3.0% over the same two weeks in 2019. Looking to sell and use an agent with low fall-through rates? Get in touch.