RICS & Rightmove Report Increase in House Prices, as Autumn Rush Makes an Early Start
By Julian Reid – Owner Julian Reid Estate Agents
This month’s newly released House Price Index from property portal Rightmove reveals a 0.8% increase in the asking prices of new homes coming onto the market.
The Royal Institute of Chartered Surveyors (RICS), the professional body of the majority of UK surveyors, In the monthly survey of its members, also reported that for the first time since October 2022, their key metric of price growth moved into positive numbers.
While this is a promising sign for the housing market, the headline increase reflects only a slight, though potentially significant, rise.
As a key measurement of the RICS monthly survey, the House Price Balance compares the number of professional members who report seeing rises in house prices against those who see falls. A net balance of +1 per cent, reported a price rise in August, up from a -67 per cent for the same time a year ago.
Additionally, 14% of surveyors now predict steady price increases over the next three months, an unusually optimistic stance for a group traditionally viewed as cautious about property values.
The survey also noted an increase in buyer demand with more buyers active in the market, due in all probability to the Bank of England’s cut to the base rate, as well as an increase in the supply of properties coming onto the market.
RICS members’ positive outlook coincides with recent reductions in mortgage rates by many lenders. This follows the Bank of England’s decision to lower the base rate from 5.25% to 5% in early August – the first rate cut of 2024.
The Correct Asking Price is Key
Despite the busy autumn market, realistic pricing remains critical. Sellers should view forecasts of increasing house prices with caution. It’s tempting to set overly ambitious prices based on market speculation, but experience shows that overpricing leads to a longer time on the market, fewer viewings, and eventual price reductions.
The first few weeks of a property being listed on 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, resulting in little viewing interest. In the current market, overpriced properties generally stall and sit on the market unsold.
Some estate agents may encourage sellers to ‘test the market’ with higher prices. However, in today’s price-sensitive environment, this strategy rarely works. Instead, sellers should focus on pricing their homes correctly, find a buyer and then be in a great position to find their new dream home.
See our most ‘Recently Sold Properties’.
A selection of Recently Listed Homes From Julian Reid
Here are just a few of our most recently listed properties for sale from our Stoke Newington office –
House for Sale in London – Guide Price £1,950,000
Apartment for Sale in London – Guide Price £725,000
Apartment for Sale in London – Offers Over £475,000
Flat for Sale in London – Guide Price £395,000
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.
See our ‘Recently Sold Properties’.
Mortgages
The Rightmove weekly mortgage tracker shows that the average 5-year fixed mortgage rate is 4.67%, and while this is lower than the peak of 6.11% in July 2023 nearly double the 2.34% at this time three years ago.
If you are considering a move, It is more important than ever to shop around for the best deals and remember that not all deals are advertised, some of the best deals are only available from mortgage brokers.
Ready for a move this Autumn?
Please feel free to call me at our Stoke Newington Office if you are considering selling your home in the N16 or surrounding areas of North London, either for an informal chat about the market and how we might help you with this or to book a market appraisal.
You can also use our Instant Online Valuation tool.
Good luck with your house hunting.
Julian Reid
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