An interesting news story has developed in recent days. We are all used to, in the UK at least, house prices rising and rising for all eternity, as they were earlier in the year. But it seems that there has been a recent dip in average prices. For those wanting cheaper prices however, i would not get too excited. We took a look at why house prices have fallen.
Prices Have Only Just Started Falling
So far this year, house prices have continued to rise. However, the average asking price of a home in the United Kingdom has dropped by slightly over £1,000 this month, to £337,371.
Why House Prices Have Fallen – Mostly Affects More Expensive Properties
According to our findings, average prices for larger residences, such as those with five bedrooms or more (houses and flats), and four-bedroom detached houses, have only dropped.
This is because the cessation of stamp duty savings at the beginning of July impacted both purchasers and sellers of these homes the most, resulting in a modest reduction in demand for larger homes. Even if they’re vacationing closer to home this year, many people put off moving throughout the summer months.
Why House Prices Have Fallen – Why Are They Falling?
As buyer demand continues strong, average asking prices for second-steppers (usually three- and four-bedroom houses and flats, excluding four-bed detached houses) and first-time buyers (houses and apartments with two bedrooms and less) hit new highs this month.
The stamp duty break wasn’t the most compelling reason for them to relocate, especially for buyers of lower-priced houses where the savings were less significant. We’re also witnessing an increase in interest for these properties, as purchasers who had put off relocating during past lockup periods are now taking action.
Why House Prices Have Fallen – What Does The Rest Of The Year Hold?
We foresee a fall bounce, with more sellers offering properties for sale and strong buyer demand pushing up asking prices, thanks to record numbers of people still looking to move.
The quantity of houses for sale, on the other hand, is still at an all-time low, with buyer demand consuming new supply. We’re noticing an increase in the number of properties selling quickly.
If You’re Selling
Homeowners who want to relocate should act quickly to ensure a swift sale at a reasonable price and to be in their new house before… Yes, we’ll admit it: it’s Christmas!
This is due to the fact that the chances of sellers finding a buyer are at an all-time high. Property is selling at a record-breaking pace, with homes selling in an average of 36 days. Given the high competition for property, many sellers prefer to have a buyer lined up, subject to contract, before jumping into the race to secure their own purchase.
Looking To Buy?
If you’re trying to buy a home, you’ll almost certainly be up against other buyers because there are more people looking to relocate than there are properties available to buy. As a result, you’ll need to be ready to act quickly. If you have a house to sell, get in touch with your local estate agent right once to have it listed on Rightmove. If you’re selling your house or have already accepted an offer, you’ll be in a much stronger position as a buyer.
