Property Market Sees Dip in Average Price as Buyers Wait for Financial Certainty

The average price of property coming to the market has seen a dip as new buyers hold off in search of more financial certainty amid rising mortgage rates. According to data from Rightmove, newly-marketed homes were 1.1% cheaper in November, with an average price tag of £366,999, allowing buyers to save £4,159 compared to October.

The property site noted that some new buyers are choosing to wait for more financial stability, while others who were already stretching themselves have had to pause. Tim Bannister, Rightmove’s director of property science, emphasized the unsustainable nature of the exceptional price growth seen in the last two years against economic headwinds and affordability constraints.

Buyer demand remains up by 4% compared to the more normalized market of 2019, but is down by 20% from October last year. First-time buyer properties are facing the biggest challenges, with year-on-year demand down by 26% in October due to a sudden jump in mortgage interest rates. Second-stepper demand is down by 17%, and top-of-the-ladder demand is down by 15%.

Bannister highlighted the shift from a frenzied market to a more normal one, noting that the slowing of market activity seen since the summer was further accelerated by recent changes. While some are proceeding with their moves, others are taking a pause to assess the situation amidst ongoing uncertainties.

As the market transitions to a more stable state, pricing competitively has become crucial for sellers looking to attract buyers. With the upcoming holiday season, some buyers are choosing to focus on Christmas festivities before jumping back into the home-moving activity in the New Year.

Overall, the property market continues to navigate through changing dynamics, with both buyers and sellers adjusting their strategies in response to evolving circumstances.