Average Price
The average asking price of a newly-listed homes coming to the market for sale this month is £372,359. Sellers are having to compete harder to attract distracted summer buyers in the current market, where supply is very high. Although the number of available homes for sale is 1% below this time last year, it is still very close to a 12-year high for the time of year.
Home-movers are always distracted by the summer holiday season, but this year the World Cup and the unusually hot summer have also contributed to lower activity levels.
Highlighting how price-sensitive buyers are in the current market, new Rightmove analysis shows the importance of getting the asking price right from the outset. Nearly three-quarters (74%) of homes that have successfully sold and completed this year did so without an asking price reduction.
Supply & Demand
The number of sales agreed in the first half of the year was 6% lower than the same period last year. However, it’s important context to note that across the same period, sales agreed remained level with 2024, indicating that many buyers are still being tempted if the property and price meet their housing needs.
Interest Rates
The average two-year fixed mortgage rate now stands at 4.92%, up from 4.25% in February before the war in Iran began. However, this is also a small drop from 5.08% last month. Lenders are competing strongly to lend, wages continue to rise faster than house prices which is helping buyer affordability, and unemployment remains low.
The current base rate set by the Bank of England stands at 3.75%, with the next meeting due on the 17th of September.
Regional Trends: North East
The average price for homes in the North East is £196,895 with a 2% month-on-month decrease and no change since the same period last year. On average, it takes 53 days to sell a property in the North East region.
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Source: Rightmove
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