As the Summer Cools Down, Property Prices Fall in August.
For the first time this year, the Property Market has fallen in the month of August as the Market stabilizes and returns to a “normal seasonal pattern, after a wild two years in the Property Market, said Senior Sales and Marketing Director Nadia Alexander Khan The Good Estate Agent | The Good Estate Agent Windsor.
UK Property Market house prices fell by 1.3%, £4,795 in the month of August alone to an average sale of £365,175.
However, Property experts have said that traditionally property prices fall in August, this drop in prices is par with the average over the last 10 years.
The Good Estate Agent added,
That the peak of summer holidays is taking precedent priority, with new sellers marketing their properties more competitively in order to secure a tangible buyer swiftly, aim to beat the lengthy completion times, and be moved into their new homes in time for Christmas.
Whilst the drop continues to reflect the seasonal trends in the housing market, the Bank of England’s sixth continued interest rate hike will still weigh an impact on many home movers.
Last week’s interest rate rise of 1.75% also put further buying pressure on buyer affordability according to The Good Estate Agent Group.
The average monthly mortgage payments for new first-time buyers putting a 10% deposit increased by 27%, exceeding £1000, with a reach of £1,033 at the start of the year. Together with the rising cost of living, this will lead home movers to re-consider what can be afforded to borrow and repay each month. Nadia Alexander-Khan Director of Property Market at the Good Estate Agent said.
The interest rate rises will continue to have an impact,
However this should filter through during the rest of the year, however, right now data has shown, that they are not having a hugely significant impact on the number of people wanting to move. Demand has continued to be subtle and supply constraints are improving. New listing rose by 12% same period last year, down 6% in 2019, whilst available stock declined by 39% on 2019.
House prices boomed in the last two years due to the demand during the COVID lockdown. As the would-be home movers are distracted by the summer holidays a drop in the asking prices is expected this month as the market stabilizes.
For those who are looking
To move and are concerned about the rise of interest rates, it is best to seek early professional advice and it is important to have a mortgage in principle in place early on in their moving journey to best understand what they can afford to borrow and find out about interest rates available to them, to help assess what they are able to repay each month. Always seek professional financial advice.
