5 Reasons We’re in a Buyer’s Real Estate Market

Our monthly Property Price Index analyzes in real time what is happening with property prices, as well as other trends occurring in the property market. And most importantly, what these trends could mean for you if you’re thinking about moving soon.

The autumn selling season is one of the busiest times of the year for the property market, as many people use the period between the end of the summer holidays and the busy festive season to find their next home.

This year we saw a lot of activity, with the number of sales agreed 29% higher than the calmer market we saw at this time a year ago, and 17% more people inquiring about homes for sale. But while the market remains busy, we are by no means seeing the frenetic market we saw in the aftermath of the pandemic, when many more people were looking to move than there were homes for sale. This year, potential buyers are in a better position to find the right home for them, at the right price.

Our property expert, Tim Bannister, says: “With the ball in the buyer’s court and the choice of a great crop, sellers need to price competitively to find a buyer, especially with affordability still very limited. Some sellers appear to be acting with this caution, contributing to limited price growth and better accessibility for buyers. This is helping to keep the number of agreed sales consistently and strongly ahead of the quieter market this time last year.”

So why are we in a buyer’s market?

1. House price growth was lower than average this month

Average asking price growth is a good indicator of how confident sellers are feeling about putting their homes on the market. If you want to get an idea of ​​how much your home is worth, our instant assessment tool will provide an instant estimate online, while a local real estate agent who specializes in your area and local market can schedule an in-person viewing assessment.

Although house prices have risen this month, the 0.3% increase is much lower than the usual 1.3% growth we usually see at this time of year.

2. Sellers need to price their homes competitively

Sellers who list their homes need to make sure they are at a level that will attract buyer interest. Otherwise, they may have to make a reduction later.

3. The number of homes available for sale is 12% higher than a year ago

Buyers have many more choices than in years past, and in fact, the average number of listings per agent is the highest it has been since 2014. More home choices also mean more competition among sellers eager to be the house that stands out . outside of a buyer property list.

4. Homes are taking longer to sell

TTheir increased choice of available homes means buyers are taking the time to find the right home for them. The national average time to sell homes is currently 61 days, an increase from 60 days last month and 59 days in August.

5. Affordability Pressures on Buyers

Our recent study found that average mortgage payments for first-time buyers are currently £350 higher than they were in 2019despite having fallen £150 since mortgage rates peaked last year. AND energy bills remain elevated, rising 10% in early October under the latest price cap change. Some buyers with affordability difficulties may also be waiting for certainty from the government’s Autumn Budget before starting their initiatives.

Tim adds: “We are not seeing a slowdown in activity, but some estate agents report that some developers are now waiting for budgetary clarity and anticipate cheaper mortgage rates later this year. However, others claim that those responsible for the change are largely just moving forward with plans.”

What could happen next year?

Before the end of the year, we should hear the announcement of the Autumn Budget and two further decisions from the Bank of England on what should happen to interest rates, which could have an impact on property market activity next year.

Tim says: “Despite a budget-shaped cloud on the horizon, the overall picture still looks positive for the market heading into 2025. Market activity remains strong despite affordability pressures on movers. Once we have more certainty about the content of the Budget, hopefully followed by a rapid second and third bank rate cuts, we could see another increase in market optimism, as we had in the summer.”

The header image for this article was provided courtesy of Starkings & Watson, Poringland.

READ MORE: 10 Fastest Sellers Markets Revealed