Property website Rightmove, has announced that asking prices of newly listed homes fell by 0.4% between May 14 and June 10. It’s the first time prices have fallen in the month of June since 2009, as the summer is traditionally home buyers’ season.
The decline means the average asking price is down £1,172, which in truth, is still a drop in the ocean considering the average house now costs £220,100 according to the Office for National Statistics (ONS).
Property experts have put the trend for lower asking prices down to a number of things. First to get the blame is the political uncertainty that surrounded the snap election in June – and the lack of any parliamentary majority isn’t likely to make things any better. Add to that the rise in inflation, and that wages, (in real terms) don’t quite live up to expectation.
But the dip only reflects one aspect of the property game – other areas, such as sale completions, are actually 7% up on the year. The north of England enjoyed an 11% increase in house sales year on year whilst the south lagged behind with a mere 3% rise. So, it seems that whilst the necessary business of buying and selling houses is still on the up, people are taking a more realistic and cautionary approach.
But regardless of what asking prices do from one month to the next, saving for a mortgage and getting onto the property ladder can be like climbing a greasy pole. But we can help you, whether you’re looking to remortgage, or want to understand the difference between interest only, offset or fixed rate mortgages – we’ll tell you how it is. So, settle down and make yourself at home with our mortgages hub and make sure that whatever you do, you comparethemarket.com.