Is the 0.1% fall in prices significant or is summer a usually slow?

[MsPorridge]

I know every part of the UK is like a market on its own, but where I am (West of Scotland) properties seem to be selling slower, definitely less closing dates and more reductions which I hadn't seen at all since October 2021 when I started looking for a house. Out of curiosity I checked some parts of Edinburgh and Glasgow and found more reductions than closing dates.

How is the market where you are?

Same as before, everything is getting snapped up, and very often sold signs are going straight up.

August is always slower than April but yes I think people will think twice given the economic context and this weeks interest rates.

I’m in the midlands, the market in our area has definitely cooled off, things were selling within a week where as nothing has shifted now for 6 weeks. Remember as well that the 0.1% drop in July is reflective of prices negotiated 4-8 months ago as it’s completions that are reported not accepted offers.

The summer does tend to be slower with people on holiday, it usually ramps up September and Spring time. The market where I am (Shropshire) seems relatively buoyant still, houses in popular areas sellign within weeks. What I am noticing though is a fair few houses coming back onto the market. Two houses around the corner from me SSTC last November and both have come back onto the market at 20k higher than last year. One SSTC within a week and one has only just been relisted so time will tell. I am keeping a close eye on the market as I am planning to relocate next year.

It is significant as it is the start of an expected stalling in the market. 0.1% is basically flatlining, this is to be expected as cost of living, interest rates and falling confidence are going to have an impact.

I have not seen any predictions of a serious price drop, but we are heading into a recession so it is to be expected that the market will get slower.

And YY to the poster who pointed out this 0.1% drop is nothing to do with summer, it is just being reported in summer.

I need it to slow. Houses are going so fast we're still only getting one viewing before they sell. I think in our area it's mainly hardly anything is coming on though.

It will be down to supply and demand and the availability of credit, especially for FTB. I bought and sold in 2008 and buyers were like hens teeth, we were on the market for months before selling. I really really need to move next year and am nervous about it all but in the fortunate position of having a decent amount of equity so hopefully will be ok.

Yes.

Coincided with interest rates easing up. Demand and price rises being tempered by affordability.

Some snapped up some hanging around. Seems around me the more overpriced I think it is it sells.
Shropshire also 😉. I've sstc twice in four weeks, buyer pulled out Monday new one Wednesday, but not sure if will proceed (for different reasons to the first). Oh I don't think mines overpriced I've priced to sell.

Good to hear that you sold so quickly! Good luck with your move.

Looks like they will have to cut interest rates again to keep it all going.....oh...wait a minute...LOL. The UK housing bubble is a farce and very badly needs to crash...hard.

@DeadHouseBounce i’m not sure the market will crash hard but I think prices lowering 5-15% over the next 1-2 years, depending on area is not unrealistic.

London money is still propping our area up.

Seeing lots of reductions here (Home Counties). But as almost nothing selling, that won't show up in the sold stats.

So a bit of a standoff currently where I am - sellers not reducing enough and buyers not buying. Nervous estate agents. And weirdly desperate sellers - one I viewed yesterday, we couldn't get away as the seller insisted on showing us every single improvement they'd made to the house! Which as they'd lived there for about 30 years, took a long time!

It will all come down to interest rates really.......

www.thisismoney.co.uk/money/mortgageshome/article-11134241/Average-two-year-fixed-mortgage-rate-goes-4-time-nearly-decade.html

It will always come down to supply and demand, including desperation of buyer or seller.

With limited stock in the UK, especially London, property value will continue to rise significantly over time.

I think price increases are slowing in most areas now, the market is stabalising a bit after going mad for a bit.

Don't think it will crash as some people are predicting though. People still need properties to live in and rents are sky high, costing even more than mortgages for properties of the same size.

It's not a Summer slow down; it's a falling market. These sales were agreed months ago and are just showing up in July/ August figures.
It comes down to supply/ demand but the demand element is the availability of cheap credit and general affordability which is being seriously challenged at present. I know most people think this is a temporary slow down but I doubt it.

LOL, I`m guessing you bought during the stamp duty holiday (that was when people who were clued up offloaded their property)

Ah yay people losing equity and homes!! Hard and fast fall would be devastating.

West Yorkshire here - definitely the market is cooling down. I am not expecting a "crash" but house prices will stagnate for the next 3-5years and we are entering a correction phase now so a dip of 10-15% more than likely. Who ever bought their house in the last 12months caught the very peak unfortunately. It will be great time for FTB to step on property ladder in the coming months/years. Regarding the inteterest rates, people need to make sure they do not max out their budget (i.e. our budget is £350k but we will stick to houses worth £250k +-) Thats all. Rates will increase and decrease again. What is important to make sure your house price is decent and not over inflated as the house price is what you are borrowing against! Interest might be high for a year or two but thats nothing compared to 30years of mortgage which is essentially against your house price.

No one can predict rates. Dangerous to buy into this bubble now, even if the bank lets you!

That’s a very sweeping statement. With the difficulty in getting rentals currently, a house that meets your needs for a decent amount of time and a longish fixed rate mortgage may well be a very sensible move .

As ever with every situation individual circumstances will play a large role and sweeping statements like the above aren’t helpful but clearly it isn’t actually meant to be!

Who knows what to expect and if Liz Truss increases the income tax threshold and reduces energy bills, that will help people to afford new homes.

amp.theguardian.com/business/2022/sep/07/uk-house-prices-halifax-warns-of-more-challenging-period