Asking prices drop as ‘less frantic’ property market emerges - Rightmove

The housing market is becoming more price sensitive as listing values drop and cuts rise, Rightmove claims.

The portal’s latest data shows 7% of unsold properties had their prices reduced last month, slightly up on the 7.5% that were reduced in October 2019.

It is double the 4% of properties that had price cuts in October 2021.

Rightmove’s House Price Index showed the average listing coming to market is now valued at 1.1% lower than a month before, with annual growth slowing from 7.8% to 7.2%.

That puts average asking prices £366,999.

Rightmove said buyer demand is still up by 4% on the more normal market of 2019, but down by 20% on October last year

First-time buyer properties continue to be the most affected sector, with year-on-year demand down by 26% in October, while second stepper demand is down by 17%, and top of the ladder is down by 15%, according to the portal.

The analysis showed a 13% annual increase in new sellers coming to market, while average stock per agent dipped slightly from 50 to 49 in October.

The typical time on the market has also increased to the highest level since January 2022 at 40 days.

Tim Bannister, Rightmove’s director of property science, said: “The now largely superseded mini-Budget sped up the slowing of market activity that we had been seeing since the summer, and we’re now in another state of limbo as we wait for any surprises or help in Jeremy Hunt’s Autumn Statement on Thursday.

“The frenzied market of the past two years has turned into a more normal market more abruptly and less smoothly than we were expecting. 

“Though many are getting on with moves, especially those with a purchase already agreed, understandably there are people who are pausing for thought. 

“Some buyers have decided to turn their attention to Christmas instead, and be part of the New Year jump in home-moving activity.”

Bannister said there isn’t a glut of unsold properties, and the average number of enquirers for the low number of available properties for sale is still over a third higher than it was back in October 2019, which he said is helping to prevent any price falls by more than is usual at this time of year.

He added: “The era of historically low interest rates and the buying frenzy are over, which could make way for a more normal market that opens up potential opportunities for those who were put off entering the frantic market over the past two years.”