The housing market is currently experiencing a significant slowdown, with a sharp decline in property viewings compared to this time last year. According to Propertymark, the average number of viewings per property has dropped by 66% compared to August 2022. In July, there were only 1.5 viewings per available property, compared to 3 viewings in June and 4.4 viewings in July and August last year. This decrease in viewings could potentially lead to further decreases in house prices.
Henry Pryor, a professional buying agent and property expert, believes that if Propertymark’s figures are accurate, the housing market could be heading into a “nuclear winter.” Estate agents may go to extreme lengths to attract buyers, offering incentives like providing transportation to viewings and begging for offers. Pryor also predicts that sellers will initially resist lowering their prices but will eventually have to face the reality of falling prices. He expects prices to decline by 5% by the end of the year, with further drops likely in the following year if buyers do not return after the winter.
One possible factor contributing to the decline in viewings is the rise in mortgage rates. The average five-year fixed mortgage rate is now 6.22%, while the average two-year fix is 6.76%. These rates are significantly higher compared to the summer of 2022. The increased mortgage rates, combined with a 1.9% drop in average new seller asking prices this month, could be discouraging potential buyers from viewing properties.
Despite these challenges, Propertymark’s chief executive, Nathan Emerson, believes that the sales market remains resilient, with serious homebuyers and sellers remaining active. Properties that are priced realistically and aligned with market conditions are still selling quickly. Jeremy Leaf, a north London estate agent, notes that although asking prices have dropped, this has not necessarily resulted in an increase in sales. However, he remains optimistic due to factors such as strong employment and more stable mortgage rates.
Propertymark’s latest report also reveals an increase in the number of homes being listed for sale. In July, the supply of new homes per estate agency branch rose, resulting in an average total stock of 38 properties per branch, compared to 32 in June. This represents a 37% increase compared to July last year, indicating a higher level of supply in the market. However, if demand from buyers does not keep pace with this increase in supply, prices may drop.
Overall, the housing market is currently facing significant challenges with a decrease in property viewings and a potential decline in prices. However, there are also positive factors such as increased supply and a resilient sales market. It remains to be seen how these factors will ultimately impact the market in the coming months.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
