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HouseWorth
© GetAgent Limited 2024
  1. Blog
  2. Property Market Update: October 2024
Property news
10 September 2024

Property Market Update: October 2024

Sam Edwards
Senior Writer & Researcher
Property Market Update - October 2024

Welcome to the October edition of the Property Market Report! We’ve compiled insights from experts across the UK to give you a comprehensive view of the current market.

House prices close to record highs

House prices are nearing record highs, with Halifax reporting that the typical property price reached £293,399 in September, reflecting a 0.3% monthly rise and a 4.7% increase compared to last year.

Prices have risen for the last three months in a row, suggesting that the market is in an exciting stage of recovery, with the average home value climbing by £13,000 over the past year.

Nationwide highlights a similar trend, noting that the average house price has increased to £266,094, up 0.7% from August. This marks the fastest annual house price growth in over two years, with prices up by 3.2% year-on-year.

Mortgage rates are falling, phew!

Mortgage rates continue to trend downwards, bringing welcome relief to homebuyers.

According to financial information group Moneyfacts, the average two-year fixed mortgage rate is now at 5.47%.

The average 5-year fixed mortgage rate has dropped to 4.67%, significantly lower than its July 2023 peak of 6.11%, according to Rightmove.

Halifax reports that falling interest rates, coupled with strong wage growth, are improving mortgage affordability, which in turn is boosting buyer confidence. The number of mortgage approvals also reflects this optimism, with the Bank of England revealing a 3.8% rise in August 2024, bringing the total to 64,858 - an impressive 43.4% higher than the same period last year.

One in five asking prices see cuts to attract buyer interest

Asking prices have also seen fluctuations. Zoopla reveals that one in five homes on the market have had their asking prices reduced by 5% or more to attract buyer interest.

Despite this, properties that are well-priced from the start are selling quickly, sometimes receiving offers on the first day they are listed, according to Rightmove.

The property portal also notes that overall, asking prices rose by 0.8% this month, bringing the average asking price to £370,759, higher than the long-term seasonal average.

Rightmove reports 27% increase in agreed sales

The property market continues to recover at pace, with Rightmove reporting a 27% year-on-year increase in agreed sales, signalling a strong rebound from last year's subdued conditions.

Following the Bank of England’s base rate cut, Zoopla reports that September saw a modest increase in agreed sales, as cautious buyers who had been waiting for lower rates re-entered the market. Halifax also highlights improved buyer activity, with new buyer enquiries up to a net reading of +15%, while agreed sales rose from -1% to +6%.

33 homes per estate agent according to Zoopla

The supply of homes for sale continues to rise, providing buyers with more options. Rightmove indicates that the average number of homes available per estate agent has reached its highest point since 2014.

Indeed, Zoopla’s latest index supports this, with stock levels having hit a seven-year high, with 33 homes per estate agent. Interestingly, Rightmove observes that a growing number of these properties are former rental homes, as landlords react to potential changes in capital gains tax and opt to sell.

Affordability improving for buyers

Buyer demand is robust, with Zoopla reporting a 20% increase compared to this time last year, driven by stronger consumer confidence and a growing economy. Nationwide highlights that income growth is now outpacing house price growth, which is improving affordability for buyers.

Buyers, however, remain cautious, with Halifax noting that higher mortgage rates have eroded purchasing power, although this is gradually being offset by wage growth and falling interest rates. Rightmove adds that despite this renewed confidence, buyers are still taking their time, averaging 60 days to find a home.

More sellers flooding the market

Seller activity is also on the rise, with Rightmove showing a 14% year-on-year increase in new sellers entering the market as homeowners feel more confident.

If you’re looking to gain an advantage over competitors, allow a reliable agent to price your home realistically. Overpricing can lead to significantly longer market times, up to twice as long as well-priced properties.

Summary: A promising future ahead

As we look ahead to the winter months, the easing of mortgage rates and rising economic confidence are expected to continue driving the housing market, offering promising opportunities for both buyers and sellers.

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