Rightmove’s Latest House Price Index
24 Nov 2022
-1.1% Monthly asking price decrease, in line with pre-pandemic five year average
+7.2% Annual price growth
+13% Increase in new sellers coming to market versus same period last year
The latest monthly sample of residential property prices and housing market activity from Rightmove demonstrates that whilst financial uncertainty continues a drop in prices is in line with normal activity. Here’s a snap shot of the UK housing market, according to Rightmove, for those still selling a home or wanting to sell in the near future.
- The average price of property coming to the market drops by 1.1% (-£4,159 average) this month, which despite the weight of financial uncertainty is in line with the average 1.1% drop recorded in November during the pre-pandemic years of 2015-2019
- The proportion of properties seeing a reduction is only slightly up on pre-pandemic levels, though a slowdown in activity from last year’s frenetic market has led more sellers to be willing to reduce their asking price to agree a quicker sale
- In October 8% of unsold properties on Rightmove were reduced in the month, in line with the 7.5% of properties that were reduced in October 2019
- However it is double the 4% in October 2021 as the market becomes increasingly price sensitive and emphasises the importance of following your agent’s recommendation on pricing
- Buyer demand is still performing better than it was during the more normal market of 2019 - up by 4% - however some new buyers appear to be holding off to wait for more financial certainty and it is clear that we have returned to a much more price-sensitive housing marketing after two years of a buying frenzy
- The era of historically low interest rates is over, but there are positive signs that mortgage rates and availability are now settling down and further some lenders have now reducing their rates which is encouraging news for buyers and sellers.
Tim Bannister, Rightmove’s Director of Property Science: “The plethora of predictions about what might happen to prices next year comes at a time when much is still uncertain, but what is certain is that the exceptional price growth of the last two years is unsustainable against the economic headwinds and growing affordability constraints. Home-owners who come to market in the final few months of the year tend to price lower to attract buyers in the lead-up to Christmas and we’re hearing from agents that both existing and new sellers understand that to sell in the current market they need to price competitively. During the market frenzy many agents said that they had to rip up the rule-book on valuing properties due to bidding wars, but now they’re back in more familiar territory, and pricing right first time is even more critical to securing a sale. It’s important to note that there isn’t a glut of unsold properties, and the average number of enquirers for the low number of available properties for sale is still over a third higher than it was back in October 2019, which is helping to prevent any price falls by more than is usual at this time of year. The era of historically low interest rates and buying frenzy is over, which could make way for a more normal market that opens up potential opportunities for those who were put off entering the frantic market over the past two years.”
Property Pictured: Westminster Drive, Burn Bridge launched onto the market by Beadnall Copley Harrogate on 1st November and sold – subject to contract – in less than 2 weeks
House Price Index findings for November 2022 as originally reported on Rightmove.co.uk