First time buyers, now is your chance to get onto the property ladder because asking prices have reportedly dropped all across England and Wales by an average of 2.9%. It is typical to see a drop in prices around the summer months but this month’s figures are considerably lower than what was expected. The reason for this slump is likely because so many new properties have gone on the market that current sellers have to lower their asking price to compete. That’s bad news for the seller but excellent news for anyone trying to buy his or her first home without spending a fortune.
In some London boroughs, homes that went on sale this August are £72,000 lower than the previous month, making the average house price close to £780,000. While this is still higher than August 2013’s £702,000, the property market hasn’t seen a summer slump like this since Rightmove began collecting these records in 2001. Furthermore, this year’s slump is even higher than that of August 2007 when the property market suffered.
So what exactly does this mean for buyers and sellers? Well, if you’re looking to sell your property in the coming months, you’ll likely have to work very hard to get the price you want, particularly if you’re located in east Anglia which has seen the biggest fall of 4% this month. Selling off your property before the prices drop even further should be your primary goal. For buyers, this is your chance to put forward an offer just under the asking price to get away with a better deal.
Of course, predicting house price trends in future months is as reliable as predicting the weather, but if history is anything to go by then November and December – the months that almost always have the lowest asking prices – should see a bigger drop from previous years.