Their latest data for July reveals that the average property price coming to the market has seen a 0.2% decrease monthly, landing at £371,907 as a UK average. This is due to new sellers adjusting their price expectations in response to recent interest rate increases and buyer affordability constraints.
The annual growth in asking price was at 0.5%, the lowest since November 2019. However, the average asking prices are still 2.6% higher than in January, as stated by Rightmove. June’s sales agreement rate was 12% below the average market level in 2019.
The portal suggests this is due to the Bank of England’s interest rate increases and higher mortgage pricing, though buyer demand remains 3% higher than in 2019.
Impact on Different Home Sectors
As reported by Rightmove, the most impacted sectors by the decreased sales agreements are the larger home sectors. The mid-market second-stepper and top-of-the-ladder sectors saw a 14% decrease in June’s sales agreements compared to 2019.
On the other hand, the smaller home sector, with two bedrooms or fewer, was less impacted, with a 9% decrease in June’s sales agreements compared to 2019.
Despite these changes, “right-priced” homes continue to attract motivated buyers due to a shortage of properties compared to historical norms. According to Rightmove’s index, the number of properties available for sale is 12% lower than in 2019.
The Importance of Realistic Pricing
Rightmove stressed the importance of realistic pricing, stating that properties that require a price reduction are 10% less likely to find a buyer than those initially priced right. With the current market conditions reducing the chances of selling, an initially overpriced property markedly reduces those chances further.
Tim Bannister, Rightmove’s director of property science, said: “The continuing twist and turns of persistent inflation and higher mortgage rates have posed some additional challenges for the market. Sellers who price right the first time have a much better chance of attracting one of these motivated buyers. A good local agent will provide sellers with accurate evidence of prices achieved in their area.”
Sam Webb, Owner and Founder of Property Webb, said, “Mastering the pricing strategy when selling a property is more than just a necessity; it is a meticulously planned move. In an ever-changing property environment, properties priced higher than their worth risk becoming stagnant, potentially culminating in a sale at a rate substantially lesser than their actual worth. On the other hand, underpricing can spark unnecessary doubts, leading potential buyers to question the quality of the property or the urgency of its sale.
Understanding the complexities of the market and determining an accurate price attracts ideal buyers, conserves precious time, and paves the way for a seamless transaction. An appropriately priced property conveys a sincere commitment to prospective buyers, triggering a sale that appropriately reflects the property’s market value.
Ultimately, the success of any deal relies on a realistic pricing strategy. A strategy that ensures a mutually beneficial situation for both the buyer and seller and aids in maintaining the stability of the property market as a whole.”