Prices have increased by almost £3,000, which is double the long-term average for September
Average house prices have climbed by £2,974, or 0.8%, this month, reaching £370,759. This marks a 1.2% rise year-on-year and is double the long-term average for September.
According to Rightmove’s House Price Index (HPI) for September, the typically busier Autumn market has started early, with buyers taking advantage of a “window of opportunity” due to falling mortgage rates and an increased number of properties on the market.
The latest index indicated greater confidence in the market, with the number of new sellers up 14% compared to this time last year.
The average number of homes for sale per estate agent is also at its highest since 2014.
The number of sales being agreed is up by 27% compared to this time in 2023.
However, Rightmove said that despite some strong headline figures this month, there are several factors contributing to market caution.
These include the timing of a potential second bank rate cut and the impact of October’s Autumn Statement announcements on different market segments.
In addition, the average five-year fixed mortgage rate stands at 4.67%. Although this is lower than the peak of 6.11% in July 2023, it is almost twice as high as the 2.34% rate from three years ago.
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The HPI revealed it is currently taking an average of 60 days for a seller to find a buyer. This is three days longer than in the more subdued market at this time last year, “as value-conscious buyers take their time to find the right home at the right price”.
Tim Bannister, Rightmove’s director of property science, said that the Autumn has started with “a strong rebound in activity from both buyers and sellers compared to the subdued market at this time last year, continuing the momentum from the better-than-expected summer market.”
He added: “The certainty of a new government followed by the first Bank Rate cut in four years invigorated the market, opening a window of opportunity for movers to act.”
Bannister said some of the market activity is likely “pent-up demand from those who had to hit the pause button until now.”
“However, windows of opportunity tend to need a momentum of good news to stay open, and there are still uncertainties ahead which could cause some of the current market activity to ease.”
Bannister said despite the rebound in market activity “home-owners who are thinking of coming to market soon shouldn’t let the increased activity make them over-optimistic and must price competitively to sell.
“With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price.”
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