London's housing market is facing a significant downturn, with average prices falling over £35,000 this summer. Here's what you need to know.
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In a surprising twist, London’s average home price has taken a hit this summer, plummeting by over £35,000. This significant drop comes as the property market grapples with various economic pressures. Data from Rightmove reveals that the average asking price in the capital now sits at £666,983, reflecting a 2.6% decrease in just one month.
This sharp decline follows a peak of £701,990 recorded in May. What does this mean for potential buyers and sellers? Let’s dive deeper.
Current Market Trends
According to Rightmove, we’re witnessing a “two-speed market.” Some savvy sellers are adjusting their prices to lure buyers in, while others are stubbornly sticking to higher figures.
Across the UK, the average house price has dipped by £10,000 this summer, with August alone seeing a nearly £5,000 drop, bringing the average to £368,740. Interestingly, this trend fits the historical pattern, as August often experiences similar declines.
But why is this happening now?
In a further breakdown, new sellers have also seen their average asking price fall by just over £10,000 this summer, dropping from £379,517 in May. Notably, 34% of properties on the market have undergone price reductions, marking the highest rate for this time of year since 2012, according to Rightmove. Is this the best time to negotiate a deal?
Time on Market
The average time it takes to secure a buyer has now hit 62 days. However, properties that are priced right are moving much quicker, averaging just 32 days on the market compared to 99 days for those requiring a price cut. Interestingly, the number of sales agreed is currently 8% higher than this time last year, suggesting that despite the price drops, serious buyers are out there making moves. Could this mean a resurgence in buyer activity?
Additionally, the volume of homes for sale has surged by 10% year-on-year, creating a more competitive environment for buyers. Colleen Babcock, a property expert at Rightmove, noted, “Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers.” So, what should you do if you’re considering buying?
Future Outlook
With the Bank of England recently cutting the base rate, there’s potential for a boost in confidence within the housing market. Babcock highlighted some positive signs for the upcoming months, especially with strong summer sales and steady buyer demand. Historically, autumn tends to see a spike in activity as families prepare for the new school year; many sellers aim to close deals before Christmas. Are you ready to jump in?
However, the current landscape suggests that potential buyers need to act fast. Amy Reynolds, head of sales at Antony Roberts in London, emphasized that while the market has slowed, it’s also rebounding. “Those who hold back may see the property they like snapped up by someone else,” she cautioned. “It’s always worth an inquiry to gauge the seller’s position.”
Mary-Lou Press, president of the National Association of Estate Agents Propertymark, echoed these sentiments, pointing out the positive signs despite economic uncertainties. “The performance of the property sector is a strong indicator of consumer confidence,” she stated. With all this in mind, are you ready to explore your options in this evolving market?
