28 July 2017 | Admin | 0 Comments
Rightmove has published its latest house price index at July 2017. The headlines:
- Newly-marketed property prices at virtual standstill, up by 0.1% (+£312) as we enter quieter holiday season
- Fundamentals remain good mid-year with robust demand, low interest rates and low unemployment:
- Sales agreed numbers remain strong year-to-date in 2017, almost identical to 2016
- Prospective buyers in many parts of the country are seeing the highest proportion of properties marked as sold than at any time in the last seven years
- Even with 7.6% more sellers coming to market this month compared to this time last year, buyer choice is restricted as supply fails to keep pace with strong sales and buyer demand
- Stretched buyer affordability acting as a price brake with national average at a modest +2.8%, with buyers very price sensitive and some properties hitting their price ceiling
Rightmove says ‘As we reach the half-way point of 2017 the fundamentals of the housing market appear to remain robust a year after the shock referendum result. Interest rates and unemployment remain low, and demand for housing remains high, exacerbated by the shortage of available unsold property for sale. This means prospective buyers in many parts of the country are seeing a lot of sold boards on properties they would like to buy themselves. Indeed, the strength of buyer demand and lack of new build and existing property coming to market have resulted in over 45% of agents’ property stock being sold subject to contract. This is the highest proportion ever recorded by Rightmove since we started tracking it seven years ago.’
Rightmove cautions sellers that the market is very price-sensitive and some properties are hitting their price-ceilings, with buyers struggling to pay any more, particularly in the light of muted wage growth and early signs of tightening consumer credit.
The national average asking price for first-time buyers is now almost £200,000, with those taking a second step on the ladder expecting to pay £268,685 on average.
There has been an annual increase in property prices nationwide, although the monthly figures show a small drop in the north and east, and no change in the south-west.
Property performance in London varies, with the super-expensive boroughs of Kensington & Chelsea and City of Westminster cooling down a little, with small annual drops. The inner London boroughs of Hackney, Lambeth and Newham are all showing strong growth, as previously predicted.
In the light of the market price-sensitivity, it will be even more important to present a sales property listing effectively. At I Am the Agent, we offer sellers free pro photos in our IATA Essential sales package. These really make a difference in showcasing the property to potential purchasers and will often be the ‘stand-out’ feature that makes searchers click through for a better look.
You can see all Miles Shipside’s comments and the full Rightmove house price index report here.
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