House prices plunge by average of £6,000 in November as interest rates bite | Personal Finance | Finance
The average price of a home coming on the market fell by more than £6,000, month on month, in November, according to a property website.
In the UK, Rightmove reported a 1.7 percent (£6,088) decrease in average asking prices for new sellers this month, bringing the figure down to £362,143.
While asking prices do typically record a fall during this season, the 1.7 percent drop represents the most significant percentage decrease recorded for the month of November in five years, the report said.
Rightmove said the fall indicates that new sellers are increasingly adopting more realistic price expectations from the outset of their marketing, to tempt potential buyers.
Tim Bannister, Rightmove’s director of property science, said: “We’d expect to see a drop in new seller asking prices in the last couple of months of the year, as serious sellers start to separate themselves from discretionary sellers and cut through the Christmas noise with an attractive price to secure a buyer.
“However, the larger-than-usual drop this month signals that among the usual pricing seasonality, we are starting to see more new sellers heed their agents’ advice and come to market with more enticing prices to stand out from their over-optimistic competition.
“Buyers are still out there, but for many their affordability is much reduced due to higher mortgage rates.
“It now looks like more sellers are understanding Rightmove’s research; that the chances of securing a buyer are much greater if they price right the first time, rather than over-pricing and reducing their price later.”
According to Rightmove, the number of sales being agreed is now 10 percent lower than the same period in 2019, improving from being 15 percent below 2019’s level last month.
Meanwhile, the number of available homes for sale is one percent behind this time in 2019.
However, these are averages across Britain and some areas and sectors are faring better than others, the website said.
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