The Local Property Market Update August 2024
By Steve Cook – Partner Clarke Gammon
With the recent interest rate cut from the Bank of England, the traditional seasonally quiet August has been more active than expected, with an increase in the number of buyers viewing, property coming to the market and sales agreed.
The increase in activity is confirmed by Rightmoves recent House Price Index, which shows the number of buyers is up 19% since the beginning of August, compared to the same time last year. The number of sales agreed is also up, increasing by 16% compared to the same period a year ago.
As a consequence of lower mortgage interest rates, the resulting increased buyer activity and the predicted busy autumn, Rightmoves annual forecast for 2024 has been updated from -1% to +1%.
The weekly mortgage tracker is also highlighted in the report and shows that the average 5-year fixed mortgage rate is now 4.80%, significantly lower than 5.82% a year ago. The report confirms the best available 5-year fixed rate is now 3.83% for those with a 40% deposit, the lowest a 5-year fixed rate has been since the period before the mini-Budget in September 2022.
Interestingly, the report shows that asking prices of property coming to the market saw a seasonal drop of – 1.5%, with the caveat – (August has seen a monthly decline in prices from July for the last 18 years, with this month’s fall in line with the long-term average).
House Price Growth at 14 Month High
The quarterly Land Registry House Price Index is the most accurate of the various indexes, as it’s based on actual prices paid, it is though, always behind the curve as prices are based on the previous quarter.
The latest index is based on property completions from April – June 24, and given the often lengthy transaction periods, which can be the result of properties being sold 8 or 9 months ago, only completing now.
This lag can be confusing for sellers, particularly when media publish headlines like ‘House price growth at 14 month high’(*), when in reality, the numbers are now already very out of date.
(*) The Land Registry Index confirms that as of June 2024, the average house price in the UK is £287,924. Property prices have risen by 0.5% compared to the previous month, and risen by 2.7% compared to the previous year. Keeping house price inflation at a 14 month high…
The Correct Asking Price is Key
With speculation surrounding future house prices and the already out-of-date Land Reg data that are talking prices up, it would be easy for would-be sellers to consider being optimistic on asking price. Managing these expectations is always difficult, but it is essential that sellers should not underestimate the mistake of over-pricing their home.
The first few weeks of a property coming to the market is often its best chance of selling, buyers are smart, they know the values of property having emersed themselves and researched the market. If a property is overpriced, it will not attract the same interest and will likely miss the initial peek of buyer interest, with little viewing interest, overpriced properties generally stall and sit on the market unsold.
There are estate agents that will play on the seller’s hopes of achieving a higher price, advising owners to ‘give it a try’. This strategy, in a price-sensitive market, does not work, so don’t be tempted, price correctly, find a buyer and be in a position to find your dream home.
See our most ‘Recently Sold Properties’.
Recently Listed homes
Here are a selection of some of our most recently listed homes for sale –
New House for Sale in Haslemere – £2,500,000
New House for Sale in Headley Down – £985,000
House for Sale in Haslemere – £1,495,000
House for Sale in Liphook – £759,950
New House for Sale in Headley Down – £715,000
New House for Sale in Liphook – £625,000
To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.
Considering a Move this Autumn?
We have strong demand for properties in and around the towns and villages covered by our offices in Guildford, Haslemere and Liphook with many motivated buyers looking for a new home.
If you are considering a move please feel free to contact any of our offices, either for an informal chat about the market and how we might help you with this or to book a market appraisal.
Why not try our instant online valuation tool?
Steve Cook
Partner Clarke Gammon
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