The housing market is showing early signs of its traditional autumn bounce. However, estate agents still face a battle to manage seller expectations.
The number of homes for sale has reached a 12-year high.
The average asking price of newly-listed properties rose by 0.7%, or £2,441, in September. That takes the average to £367,440, according to Rightmove.
It is the first monthly increase since May. It is also slightly ahead of the average September rise of 0.5% recorded over the past decade.
However, asking prices remain 0.8% below their level a year ago. They are also 2.3% lower than at the start of the summer.
Buyer activity has picked up following the holiday period. However, demand remains weaker than last year.
Buyer enquiries are 9% lower year-on-year. Agreed sales have also fallen by 9%.
New listings are 3% below this time last year. Despite that, the total number of properties available to buy has reached a 12-year high.
The figures point to a highly competitive market. Agents therefore face pressure to ensure vendors price realistically from the outset.
Rightmove property expert Colleen Babcock said: “September’s above-average price rise is a welcome sign of confidence after a particularly subdued summer, but it should be viewed as a modest recovery rather than a major turning point.
“While buyers and sellers are returning to the market after the summer holidays to potentially fuel an Autumn bounce, sellers face stiff competition from a 12-year high number of other homes for sale.”
Rightmove’s analysis suggests getting the asking price right from the start is increasingly important.
Some 74% of properties that sold so far this year came to market at the right price. They did not subsequently require an asking-price reduction.
Overall, 61% of homes coming to market find a buyer. That compares with 74% during the supply-constrained market of 2021.
However, the chances of securing a buyer vary substantially by region.
Scotland has the highest success rate, with 91% of properties finding a buyer. In North West England, the figure is 71%.
That compares with 56% in the South East.
London remains particularly challenging. Just 42% of homes coming to market in the capital find a buyer.
Babcock added: “Buyers continue to have plenty of choice and mortgage rates are increasing, so competitive pricing is still the biggest factor in attracting interest and securing a sale.
“Sellers who get the initial asking price right are giving themselves the best chance of standing out in a crowded market.”
Agents will also need to manage vendor expectations around the time required to complete a move.
It currently takes an average of 64 days for a seller to find a buyer. After securing a buyer, completion takes another 150 days on average.
That puts the average selling process at around seven months. Sellers entering the market now could therefore be waiting until after Easter to complete.
Affordability remains another constraint.
The average two-year fixed mortgage rate has increased from 5.09% last month to 5.29%.
Rightmove said recent increases in borrowing costs have added around £180 to the average monthly payment on a new mortgage.
Matt Smith, Rightmove’s mortgage expert, said: “This month’s traditional uplift in buyer activity shows there’s still a strong underlying desire to move, but volatility in mortgage rates remains a significant challenge for many.
“Mortgage rates have risen again over the past month, adding further pressure to monthly budgets, and the uncertainty over what may happen to rates in the medium term is likely holding back some potential movers.”
