- Normal decrease in asking price
- House price growth is still in positive territory
- Average time to sell a house is 61 days
Brian Murphy, Head of Lending for Mortgage Advice Bureau comments:
“Whilst the data released by Rightmove today provides us with trends on asking prices, rather than completed transactions, it does provide us with a very valuable indication of current market sentiment. And for many, the report may make for quite reassuring reading, as it would appear that although there was a marginal decrease in asking prices last month, this is normal and has actually been the same for the last seven years, with an average decrease of 1.2% on asking prices in July since 2010. It’s quite likely that this ‘mini cool down’ probably represents those who are marketing their properties over the summer months being well intentioned vendors, e.g. keen to sell due to lifestyle factors, hence pricing their properties competitively.
In any event, with asking prices on average across the UK still seeing annual growth of 3.1%, the market is still ticking over nicely. For those who say that growth is weakening, it perhaps might be sensible to suggest that house price growth is still in positive territory, which in itself is positive news, and that the rate of growth being incremental rather than a sudden upwards curve is probably very positive, as we don’t need a market spiralling out of control. In fact, given that current house price growth is in line with market forecasts for 2017, there is nothing within the data which might raise cause for concern.
Looking at the average time to sell across the UK going from 60 days in June to 61 days in July again potentially underscores the fact that the property market is functioning as per normal. As the report also suggests, whilst there are regional variances, and the Midlands and East of England are performing exceptionally well, even given the time of year, it’s still the lack of supply versus strong consumer demand from property that underpins the current direction of travel for the market. Whilst this dynamic continues, together with the exceptionally competitively priced mortgages that are currently available, then the likelihood is that the market will continue in a similar vein in the coming months.”
If you’re considering moving house and want to speak to a mortgage adviser about your financial position, please don’t hesitate to get in touch with us today – we’ll be more than happy to help.