Rightmove has revealed that the asking prices of property coming to market in September are up by 0.9% (+£2,474), the first rise at this time of year since September 2011.
The average change for September over the past decade has been a fall of 0.5%, so this bucking of the trend heralds a quicker than usual upturn as autumn’s market gets going after the summer holiday downturn, Rightmove said.
Rightmove generated over four million enquiries in August, the second highest level ever recorded, with only January this year being marginally higher.
Meanwhile, enquiries from mobile devices are up by 45% this August compared to the same month in 2013.
Miles Shipside, Rightmove director, said: “We usually see a price fall at this time of year as potential home-movers are generally still in holiday mode. However, it looks like there are early signs of a bounce-back in demand after the summer lull, leaving those estate agents with a shortage of stock at a potential disadvantage and therefore eager to attract new instructions.
“While there is more property coming to market this year, it has been more than swallowed up by increased sales. There is already 10% less property available per estate agency branch compared to this time a year ago, and with enquiries by phone and email to agents up by 16% compared to August last year, and at near record levels, you can see why there has been an earlier than usual price pick-up.
“The ability of potential buyers to remain on-watch and in-touch and react more quickly is also a factor. While you may be switched off from work during the summer break, many people’s mobile devices are still switched on to the internet to see what’s coming to market.”
Rightmove said that while its latest data suggest the market is poised for a resumption of strong activity, albeit at a less heady pace, some analysts are forecasting a return to a less certain economic outlook should there be a vote for Scottish independence. Events that cause uncertainty have historically been a dampener on housing market sentiment and activity, it warned.
Shipside said: “Even the very debate around Scottish independence and possible implications for the economic outlook for the rest of the UK could cause uncertainty in the minds of potential home-movers contemplating a large long-term financial commitment.
“Speculation amongst economic forecasters on topics such as upwards pressure on interest rates, availability of wholesale funding for lenders, and the geographic location of major financial institutions are potentially destabilising influences on consumer sentiment. Should the independence vote win the day, then there could be months of uncertainty with the forthcoming general election causing further disruption. From a buyer perspective when other home-movers are nervous it can be a good time to act, as harder bargains can be driven.
“Those who are buying and selling in the same transaction may have to drop their selling price but could be able to make up the difference by paying a lower price for their onward move. Locking into a fixed rate mortgage would help
guard against any increased interest rate volatility. The other point to remember is that waiting and pin-pointing the best time to move can leave your life and future property enjoyment on hold for years, so if the sums stack up and the property suits your needs then it might be best to ignore the what-ifs and maybes.”
