October this year will see the weakest rise in asking prices for home sellers since the financial crisis, according to Rightmove.
Prices for newly listed properties typically rise in October as the market picks up in the autumn, but the average asking price for new sellers rose just 0.5 per cent (£1,950) month-on-month to £368,231. – said Portal.
And the increase is the smallest increase in the average asking price at this time of year since 2008 and well below the average 1.4 percent increase recorded this month over the past two decades, the website says.
The consensus sales figure is 17 percent lower than this time last year.
Real estate experts have already talked about this. I that high mortgage rates affect affordability and cause home prices to fall.
And Rightmove’s analysis shows that starting out with a price that’s too high and then lowering your asking price can negatively impact your chances of selling.
Tim Bannister, property director at Rightmove, said: “Asking prices from new sellers have risen as they usually do at this time of year following the summer holidays.
“While much more moderate growth this year suggests some new sellers are gradually following their agents’ advice on competitive pricing, agents report that other sellers are still adjusting their expectations for the price they are likely to achieve.”
He added: “Buyers are likely to be looking for homes that they feel offer excellent value for money, and to attract one of these motivated buyers, sellers need to get the price right first time.”
“When comparable properties nearby appear overpriced, reputable sellers have the opportunity to stand out from the crowd by offering a more competitive price and attracting immediate buyer interest. Our research shows that the chance of finding a buyer increases significantly.”
A separate study by Hamptons real estate agent found that the average rent for new rental properties in September was 11.7 percent higher than a year earlier.
Hamptons estimates the average monthly rent for a newly let property to be £1,325.
Data provided by Savills estate agency. I Last week it emerged that rising mortgage rates are putting pressure on landlords’ profits. The agency warned that this would put upward pressure on market rents.