November dip gifts buyers cheaper homes before Christmas, but Rightmove warns prices will pick up in 2016
11-17-2015
- Annual November slowdown lowest for four years, with prices falling 1.3%
- Average asking price across the UK is £292,572, Rightmove says
- Sellers ask below average asking prices in run up to Christmas
By Jane Denton For Thisismoney
The traditional autumn house price lull has brought a chance for home hunters to buy a cheaper property, but a smaller than expected dip could spell a steeper rise for 2016, says property listing website Rightmove.
November saw the smallest slowdown in asking prices for properties across the UK for four years, new research claims.
House prices fell 1.3 per cent, bringing the national average cost of a home down to £292,572, Rightmove said. This smaller than usual November drop indicates steeper value climbs next year, the property website predicts.
Ups and downs: Shifts in property prices in England and Wales last month and over the past year, according to Rightmove
Buyers on the lookout for a new home in the run up to Christmas can expect sellers to set lower than average asking prices the findings also suggest, as they tend to have more urgency.
Meanwhile, seven in ten of the 23,000 homeowners surveyed said they expect property prices to increase again next year.
Miles Shipside, director and housing market analyst at Rightmove, said: 'New-to-the-market sellers have dropped their asking prices at this time of year for the last eight years, with an average drop of 1.9 per cent over the last five years.
'Those looking to market their property as Christmas gets closer often have a greater sense of urgency to find a buyer and sensibly recognise that trimming their asking price will provide an incentive to potential buyers more focused on seasonal Christmas trimmings.'
Shipside added: 'It's likely to be a short-lived respite as the combination of high confidence and low interest rates is a recipe for higher prices next year.'
While average asking prices dipped in November, in the last 12 month average property prices across the country have risen by 6.2 per cent or over £16,000, Rightmove said.
This month, average property prices for first-time buyers across the UK have fallen by 3.9 per cent to £177,533, compared to £184,676 in October.
But, in the past year, average prices for first-time buyers across the country have risen by 7.6 per cent.
Trends: Monthly asking price trend for property prices, Rightmove said
In London this month, average property prices dropped 1.6 per cent to £619,866, compared to £630,050 in October.
But in the past year, house prices in the capital have risen 8.1 per cent and averaged £573,228 last November, Rightmove said.
Wales saw the biggest dip in house prices this month, with the average cost of a property falling 3.7 per cent to £169,542.
In the last year, average house prices in Wales fell 0.8 per cent, the findings suggest.
In October, the average number of days it took to sell a property was 66 days, compared to 69 days at the same time last year.
Eighty-five per cent expect their financial situation to improve or stay the same in the next year, Rightmove said.
Shipside said: 'While confidence can be fragile, it is currently riding high. It seems that most home-owners are not worried by the risk of the 2016 rate rises, with only one in seven thinking their financial situation will deteriorate.'
Shipside added: 'Long-term low interest rates are typically a trigger for activity and price rises in the property market while other parts of the economy are less susceptible to such an incentive.
'The spur of cheap money - if you’ve got your credit rating in good order - helps buyers to pay the asking price or outbid the competition for their ideal home.'
Changes: November monthly change in asking prices from 2006 to 2015, according to Rightmove