First monthly drop in new asking prices this year

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First monthly drop in new asking prices this year

Average Home Prices 2023

Average new seller asking prices fall by £82 (-0.0%) this month to £372,812, the first monthly drop in asking prices this year and the first drop seen in the month of June since 2017.

The delayed spring bounce in May has quickly turned into an earlier than usual summer price slowdown which could be good news for buyers. Asking prices are set to fall in most months for the rest of the year in line with the usual seasonal pattern, and Rightmove still predicts an overall 2% annual drop in new seller average asking prices by the end of 2023.

Interest Rate Increases

Despite some significant increases in mortgage interest rates over the last few weeks, Rightmove’s statistics currently show no effect on buyer demand but a slight impact on sales activity.

Buyer demand over the last two weeks is 6% higher than the same period in 2019’s more normal market. The number of sales being agreed has dropped marginally, and in the last two weeks is 6% behind the same period in 2019 compared to being 3% behind in May.

Inflation Rates and Mortgages

Tim Bannister Rightmove’s Director of Property Science comments: “We expected some more twists and turns this year and we’ve had several in the last month, including stubbornly high inflation figures, surprisingly large average wage increases, and their eventual impact on mortgage interest rates and availability. We expect that there may be more change to come depending on inflation figures and the Bank of England Base Rate decisions. It is likely to feel very frenetic

for those taking out a mortgage right now, as they try to quickly lock in the best rate that they can find. Although the impact of higher mortgage rates on activity levels has been limited so far, with prospective buyers who can still afford to move appearing determined to go ahead, it remains to be seen how movers will respond to the expected further rate rises.”

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