August saw a drop in housing prices for the first time in 18 months according to Rightmove, but only for bigger homes of 5 bedrooms+ with smaller properties still experiencing record highs.
The drop in average asking prices of larger homes is no doubt due to the fact that both buyers and sellers of these homes have been affected by the end of the Stamp Duty Holiday. Also, summer is traditionally a quiet time for house moves.
Prices still rising for second-stepper and first-time homes
Prices are still rising in homes aimed for “second-steppers” (3-4 bed houses/flats) and first-time buyers (houses/flats with less than 2 beds) with record demand again in August. Tim Bannister (Rightmove Property Data Expert) says “This is because the stamp duty holiday wasn’t the biggest motivator to them choosing to move, especially for buyers of lower-priced homes where the savings were not as big. We’re also seeing a jump in demand for these properties as buyers who had put their moving plans on hold during previous lockdown periods are now choosing to act. In England, there remains a smaller stamp duty saving of up to £2,500, though the window to take advantage of this saving by buying now and completing by the end of September is pretty much closed.”
Demand has outstripped supply – until now?
Until now demand has been far greater than supply, with varying and multiple reasons, Covid-19, summer holidays, people staying in the UK, Stamp Duty holidays and uncertainty in most aspects of our lives. However, given the extremely low mortgage rates and reintroduction of 95% mortgages which disappeared at the start of the pandemic, many people are predicting a more level footing of supply and demand in the latter half of 2021 and into 2022.
Also, the slow return of normality is, we hope, here to stay and as such normality will then seep into the property market and normal trends and patterns should resume as normal life resumes.
I’m thinking of buying/selling soon…
If you are looking to sell a property then there’s no time like the present with an incredibly booming sales market at present, so take advantage of the opportunity whilst you can, and bear in mind that most people don’t want to move anywhere near Christmas. Rightmove states that properties selling at an average pace of 36 days at present and their advice is “Selling before you buy puts home-owners in the best position to be at the front of the queue to buy suitable properties as soon as they come to market,” says Tim Bannister.
If you’re looking to buy a home, it’s a highly competitive market at present and you’ll need to be ready to move very fast, have everything in order ready to make a firm offer and, as above, if you have a property to sell before then you will be in a much stronger buyer position if you are in the process of selling your home, or have already accepted an offer.
Thanks for reading,
Bristol Property Centre