Sales up but prices down, according to Rightmove

The most recent report from Rightmove indicates that the number of sales agreed by agents over the last month rose by 7%, in comparison to the same period in 2016.

This is the greatest level recorded for this time of year since 2007, apart from one other higher figure seen in 2014.

Despite this, the average asking price of properties being listed on the portal has fallen by 0.4% during the last month.

Falls

This was the first monthly decline in prices recorded at this time of year since 2009 and the first monthly fall in 2017.

Yearly asking price growth is now at 1.8% – the slowest rate recorded since April 2013. As such, Rightmove predicts that the average asking price of properties coming onto the market is £316,109.

In terms of sales times, May saw properties take 59 days on average, down from 60 in April and 79 in January.

The average stock per agent is 60 properties, up from the 57 recorded in April.

Instability

Director of Rightmove, Miles Shipside, noted that a recent lack of stability has contributed towards sliding asking prices.

Shipside said: ‘The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events.’[1]

‘The high levels of sales being agreed show that the underlying fundamentals are largely unchanged with high first-time buyer demand which drives movement higher up the ladder, all aided by the cheap cost of borrowing,’ he continued.[1]

According to Shipside, markets in different local markets and sectors are reacting differently to the air of uncertainty. For example, a typical first-time buyer property consisting of two-bedrooms or less, represents the fastest growing property type, with newly-listed prices rising by 3.5% monthly and by 5.5% annually.

‘Those at the traditional starter level are brushing aside uncertainty, with demand being fuelled by the ongoing desire for home-ownership, government assistance, and mortgage repayments often being cheaper than rent for a similar property. In contrast, sectors higher up the ladder with a larger proportion of discretionary movers have seen the greatest recent price wobbles,’ Shipside concluded.[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2017/6/sales-agreed-up-but-asking-prices-down–rightmove