0:03 AM, 16th September 2024, About 3 hours ago
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The traditionally busier autumn property market appears to have started early, Rightmove reveals.
The property platform says that many buyers and sellers have spotted a window of opportunity to act as mortgage rates trend downwards and property choice increases.
The number of sales being agreed is up by 27% year on year, a strong rebound compared with last year’s more subdued market as pent-up buyer demand is released.
Homeowners are more confident to come to market, with the number of new sellers up by 14% on this time last year, and the average number of available homes for sale per estate agent at its highest since 2014.
Rightmove’s director of property science, Tim Bannister, said: “The autumn action has started early with a strong rebound in activity from both buyers and sellers compared to the subdued market at this time last year, continuing the momentum from the better-than-expected summer market.
“The certainty of a new government followed by the first Bank Rate cut in four years invigorated the market, opening a window of opportunity for movers to act.”
He adds: “Some of this will be pent-up demand from those who had to hit the pause button until now.
“However, windows of opportunity tend to need a momentum of good news to stay open, and there are still uncertainties ahead which could cause some of the current market activity to ease.”
It’s currently taking an average of 60 days for a seller to find a buyer, three days longer than in the more subdued market at this time last year as value-conscious buyers take their time to find the right home at the right price.
The average 5-year fixed mortgage rate is still 4.67%, and while this is lower than the peak of 6.11% in July 2023, it is nearly double the 2.34% seen three years ago.
The average price of property coming to the market for sale has risen by 0.8% (+£2,974) to £370,759.
September nearly always sees a rise in prices from August, but this year’s increase is double the long-term average.
This rise in prices beyond the usual seasonal norm has been driven by a strong recovery in activity this summer when compared with the much more subdued market at this time in 2023.
Mr Bannister said: “Early autumn movers who are acting quickly and taking advantage of the improved market conditions are getting the pick of quality homes for sale.
“Homeowners who are thinking of coming to market soon shouldn’t let the increased activity make them over-optimistic and must price competitively to sell.
“With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price.”
He added: “There are question marks over how the market will be affected by announcements in the Autumn Statement, but until then we expect that market momentum will continue as the autumn action rolls on.”
Propertymark’s chief executive, Nathan Emerson, said: “It is positive news to see further uplift across the housing market now affordability has more confidently swung in the direction of consumers.
“Inflation figures due out on Wednesday will prove to be a key influence on the next interest rate decision which will happen on the following day.
“Propertymark remains keen to see further dips in base rate as conditions permit, but at this point it is important to consider what effect the budget at the end of next month may have on the housing market and if today’s figures reflect a keenness by consumers to complete on a property before any potential changes to the current tax structure might be announced.”
