Homeowners keen to attract buyers in the quieter winter months are asking less for the properties than those that came onto the market in October, as high prices and new mortgage lending rules have put a temporary brake on the “mini-boom” in the housing market, Rightmove said on Monday.
Figures from the property website showed that asking prices for homes coming onto the market in November were down 1.7% on October, while the number of homes for sale dropped to a seasonal low.
Sellers typically drop asking prices in the lead up to Christmas but this year’s November asking price drop, which shaves £4,542 off the average property price bringing it to £267,127, is the smallest in five years.
The annual rate of house price growth to November this year is still up at 8.5% after eight out of the last 12 months showed property price increases.
“Selling is more difficult than it was earlier in the year, though the mini-boom experienced by much of the country has hit the pause rather than the stop button,” said Miles Shipside, Rightmove director and housing market.
“Underlying demand remains strong but has been muted by higher prices stretching affordability at the same time as the ability to borrow more to fund those higher prices has been curtailed by tighter mortgage lending criteria.”
However, buyers looking for a new home are not exactly spoilt for choice. The average number of properties per estate agency branch is at historically low levels with an average of 60 properties for sale. This is the lowest number ever recorded at this time of year, according to Rightmove.
Lack of property choice has helped fuel this year’s upwards price pressure and the website said supply shortages in some parts of the country could push prices up again in 2015.This month new listings on the property portal were down 1% on the same period last year and 15% on last month.
The situation is unlikely to improve before the year end as sellers wait until after Christmas to market their home. However, some new buyers may start the traditional New Year search for property as early as Christmas Day this year, speculated Shipside, due to the lack of affordable homes on the market.
In 2013, the site registered more than 500,000 visits on Christmas day, and more than 1.3m on Boxing day. The annual rate of house price growth reported by Rightmove, which looks at sale prices, is roughly in line with that of Britain’s biggest building, Nationwide, which records prices once the sale has been agreed.
It recently reported that the annual rate of house price growth slowed to 9% in October from 9.4% in September and said that it expected things to continue in the same direction. “Some forward-looking indicators, such as new buyer inquiries, suggest that activity may soften further in the near term, especially in London,” said Robert Gardner, Nationwide’s chief economist.
The picture is also greatly varied across the country. Prices are up 0.8% in London compared with last month, contributing to a 16.2% rise in the capital, acording to Rightmove. This compares to a 2.6% monthly price fall in Wales, meaning prices are up just over 1% annually. The average house price in Wales is now £166,992 compared to London’s £601,180.
theguardian.com
Figures from the property website showed that asking prices for homes coming onto the market in November were down 1.7% on October, while the number of homes for sale dropped to a seasonal low.
Sellers typically drop asking prices in the lead up to Christmas but this year’s November asking price drop, which shaves £4,542 off the average property price bringing it to £267,127, is the smallest in five years.
The annual rate of house price growth to November this year is still up at 8.5% after eight out of the last 12 months showed property price increases.
“Selling is more difficult than it was earlier in the year, though the mini-boom experienced by much of the country has hit the pause rather than the stop button,” said Miles Shipside, Rightmove director and housing market.
“Underlying demand remains strong but has been muted by higher prices stretching affordability at the same time as the ability to borrow more to fund those higher prices has been curtailed by tighter mortgage lending criteria.”
However, buyers looking for a new home are not exactly spoilt for choice. The average number of properties per estate agency branch is at historically low levels with an average of 60 properties for sale. This is the lowest number ever recorded at this time of year, according to Rightmove.
Lack of property choice has helped fuel this year’s upwards price pressure and the website said supply shortages in some parts of the country could push prices up again in 2015.This month new listings on the property portal were down 1% on the same period last year and 15% on last month.
The situation is unlikely to improve before the year end as sellers wait until after Christmas to market their home. However, some new buyers may start the traditional New Year search for property as early as Christmas Day this year, speculated Shipside, due to the lack of affordable homes on the market.
In 2013, the site registered more than 500,000 visits on Christmas day, and more than 1.3m on Boxing day. The annual rate of house price growth reported by Rightmove, which looks at sale prices, is roughly in line with that of Britain’s biggest building, Nationwide, which records prices once the sale has been agreed.
It recently reported that the annual rate of house price growth slowed to 9% in October from 9.4% in September and said that it expected things to continue in the same direction. “Some forward-looking indicators, such as new buyer inquiries, suggest that activity may soften further in the near term, especially in London,” said Robert Gardner, Nationwide’s chief economist.
The picture is also greatly varied across the country. Prices are up 0.8% in London compared with last month, contributing to a 16.2% rise in the capital, acording to Rightmove. This compares to a 2.6% monthly price fall in Wales, meaning prices are up just over 1% annually. The average house price in Wales is now £166,992 compared to London’s £601,180.
theguardian.com
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