Estate agency stock has hit a decade-high as falling mortgage rates boost buyer demand and have given sellers renewed confidence, Rightmove says.
The portal’s House Price Index for September suggests the “traditionally busier” Autumn property market appears to have arrived early this year with new asking prices rising more than usual and supply at 62 properties per agent.
Average prices of property coming to the market for sale has increased by 0.8% this month, rising 1.2% annually to £370,759, up by £2,974.
The Rightmove data shows sales agreed are up by 27% year-on-year as pent-up buyer demand is being released after households suffered with high bills and the cost of living crisis earlier this year.
Homeowners appear more confident to come to market, with the number of new sellers up by 14% on this time last year.
However, Rightmove said buyers remain price-sensitive and it’s currently taking an average of 60 days for a seller to one, three days longer than in the more subdued market at this time last year.
Tim Bannister, Rightmove’s director of property science, said: “The Autumn action has started early 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.
“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. Some of this will be 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.”
Commenting on the report, Nathan Emerson, chief executive of Propertymark, adopted a more cautious stance, suggesting some people could be acting ahead of tax rises being announced in the October Budget.
He said: “It is positive news to see further uplift across the housing market now affordability has more confidently swung in the direction of consumers. Inflation figures due out on Wednesday will prove to be a key influence on the next interest rate decision which will happen on the following day.
“Propertymark remains keen to see further dips in base rate as conditions permit, but at this point it is important to consider what effect the Budget at the end of next month may have on the housing market and if Rightmove’s figures reflect a keenness by consumers to complete on a property before any potential changes to the current tax structure might be announced.”
Source:- https://www.estateagenttoday.co.uk/breaking-news/2024/09/rightmove-estate-agency-stock-hits-new-high-as-autumn-market-accelerates/