🏡 October 2024 - What's happening to house prices? 🍁
"Strong activity but muted Autumn price bounce as buyer choice builds" Read the blog to learn 8 Key points from the Rightmove House Price Index that you ought to know...
Here are 8 key points from the report that you ought to know ⬇️
🟢 Average new seller asking prices rise by just 0.3% (+£1,199) this month to £371,958. This is much lower than the average seasonal 1.3% monthly increase at this time of year
🟢 Market activity remains strong, but the muted Autumn price increase comes as buyer choice and seller competition rise:
🟢 The number of sales being agreed is up by 29% year-on-year, a strong rebound from the weaker market a year ago.
🟢 Underlying buyer demand remains strong, with the number of people contacting agents about homes for sale up by 17% compared with this time last year, despite some uncertainty caused by the Autumn Budget.
🟢 The number of available homes for sale is 12% higher than a year ago – and the highest per estate agent since 2014, intensifying competition to find affordability-stretched buyers, some of whom may also have pre-Budget jitters.
The outlook remains positive for 2025, but affordability pressures remain, and some buyers may be waiting for Budget clarity and cheaper mortgage rates before acting:
🟢 The average 5-year fixed mortgage rate is now 4.61%, up from 4.55% last week, the first weekly increase since May.
🟢 The average annual energy bill for a home with an EPC rating of D is £2,465, up by 10% since September.
🟢 Financial markets are still predicting two Bank Rate cuts before the end of the year. Combined with wage growth currently outpacing house price growth, which is also boosting affordability, this suggests an active 2025.
Tim Bannister, Rightmove’s Director of Property Science, said: "This month’s subdued price growth, comes as buyer choice soars to a level not seen since 2014. With the ball in the buyer’s court and the pick of a big crop to choose from, sellers need to be pricing competitively to find a buyer, particularly with affordability still very stretched. Some sellers appear to be acting on this caution, contributing to limited price growth and better buyer affordability. This is helping to keep the number of sales being agreed consistently and strongly ahead of the quieter market of this time last year. We’re not seeing activity slow down, but some estate agents report that some movers are now waiting for Budget clarity and anticipated cheaper mortgage rates later this year. However, others state that movers are largely just getting on with plans."
