Average asking prices for newly listed properties in the UK has dropped by 1.9% this month, or £6,966# this month to £355,177, which is more than the historic average decline for the final month of the year, the latest data from Rightmove shows.
Prices were 1.1% lower than a year earlier, the figures revealed. The weakness contrasts with data from Halifax and Nationwide over the past couple of weeks two weeks, which showed modest monthly price increases, suggesting that the past year’s fall in property prices had bottomed out.
Property Prices in seven out of 11 regions are higher than a year ago. The North West leads the way, up by 1.5% compared to last year, while the South East is the worst performer at 3.7% below 2022
There are signs that the more stable market conditions will see more family movers return, many of whom put their plans on hold due to the mini-Budget fall-out and uncertainty last year:
Average mortgage rates have now fallen for 19 consecutive weeks, with the average 5-year fixed mortgage rate now 5.11% compared to 6.11% in July
Buyer demand in the mid-market, second-stepper sector is up the most against last year’s post-mini-Budget period at +9%, while overall buyer demand is up by 6% after some movers paused to wait for calmer conditions
Rightmove predicts that new seller asking prices will drop nationally by an average of 1% in 2024, with motivated sellers still needing to price below their local competition to secure a sale, as buyer affordability remains stretched
Rightmove’s Tim Bannister said: “Average new seller asking prices fall by 1.9% [-£6,966] this month to £355,177. Sellers who come to market in December often have a pressing reason to sell and need to find a buyer quickly, and therefore price more attractively to capture the attention of festivity-distracted buyers.
“However, this is a slightly bigger December drop in newly marketed property prices than usual, with the December average over the last 20 years being -1.5%. This fall is partly driven by more new sellers looking to price below the competition now that the pendulum has swung towards a buyers’ market.
“This month’s drop means that we end the year with national average asking prices 1.1% below this time last year. Higher mortgage rates have been a key challenge for movers this year, and affordability remains stretched. However, with improved market stability as we head into 2024, there are signs of greater activity from family movers who had put their plans on hold during the fallout from the mini-Budget.”
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