Rightmove reports that asking prices have fallen in many areas of Britain – and appear likely to drop further.
The portal says the average price of a newly listed home across Britain has risen 1.0% this month – but prices are actually down 0.1% on this time last year.
This index suggests that soaring mortgage rates are now biting harder, with new sellers in more affordable and previously resilient parts of Britain setting lower asking prices as buyers face mounting affordability pressures.
Indeed, the portal says sellers in four of the five lowest-priced parts of Britain have set lower asking prices this month, including falls of 2.0% in the North East and 1.9% in Scotland.
London asking prices actually by 2.5% this month, but that’s after falling 6.0% over the summer.
Prices in the capital remain 1.7% below last year, and Rightmove stresses that wider data indicators suggest that this month’s rise is not evidence of a broader recovery.
The number of sales agreed is down 8% on the same period a year ago – broadly in line with the year to date.
Rightmove says the Budget is adding a layer of uncertainty to decision-making.
“Some first-time buyers may be waiting for more detail on the Your First Home scheme, while others will be assessing what any announcements could mean for their wider household finances” according to the portal’s market snapshot.
Colleen Babcock, Rightmove’s property expert, says:“Higher mortgage rates are putting pressure on affordability but sellers appear to be responding in different ways.
“Some have room to lower their expectations, while others need to hold firm on price to make their next move add up, even if that means waiting longer for a buyer.”
And Rightmove mortgage expertMatt Smith adds: Rightmove’s mortgage expert says: “The market is incredibly hard to predict particularly with so many complex global factors affecting the cost of borrowing, so home-movers must also concentrate on what’s in front of them.
“Whether it’s borrowing less, finding a larger deposit, or negotiating the price down on an onwards move to accept a lower offer, there could be options for home-movers to explore.”
This article is taken from Landlord Today