Average Price
The average price of property coming to the market for sale sees a seasonal drop of 1.5% this month (-£5,708) to £367,785. New seller asking prices have fallen in the month of August for the past 18 years, as distractions of school summer holidays traditionally bring a dip in prices. The size of this month’s drop is in line with the long-term average.
Supply & Demand
The Bank of England base rate cut at the start of the month helped to accelerate mortgage rate drops and contributed significantly to improved buyer demand. These better conditions are helping to set up a positive Autumn market.
Since the Bank Rate cut on the 1st of August, the number of potential buyers contacting estate agents to view homes for sale is 19% higher than in the same period a year ago. This improvement in the buyer demand trend from +11% across the month of July, shows the immediate and strong impact of the first rate cut since 2020.
Interest Rates
As mentioned above ,the first base rate cut in four years is now official. Mortgage rates continue to head downwards and have picked up some pace in recent weeks. The average five-year fixed mortgage rate is now 4.80%. Although still high compared with three years ago- before the first of 14 consecutive Bank Rate increases, is an improvement from 5.82% at this time in 2023.
Regional Trends: North East
The average price for homes in the North East is £192,774 with a 0.1% decrease since last month, and a 3.6% increase since the same period last year. On average, it takes 52 days to sell a property in the North East region.
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Source: Rightmove
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