Autumn housing market update and economic forecast for this winter
Throughout October we saw a return towards a more “normal” level of market activity following two exceptional years – years when no one could have anticipated or how the housing market would react in response.
In the face of yet another interest rate rise as announced this week, Rightmove has taken a look at the market and shared some stats we hope will reassure our clients and the wider public.
Latest market facts
There’s still a strong desire to come to market.
New listings in October 2022 were up 13 per cent versus October 2021, although down slightly (-1 per cent) on the more comparable October 2019.
Demand is now in line with the last “normal” market – and still outweighs supply
Buyer demand is 20 per cent lower than we saw in the incredibly busy October 2021 but is 4 per cent higher than in October 2019.
Although buyers have greater choice than they did last year, the number of available properties for sale is still 30 per cent lower than in October 2019.
Pricing realistically is more important than ever
The average asking price for October 2022 was 8 per cent higher than October 2021, despite people worrying that house prices are or will start to fall.
Co-Director of Samuel Wood, Andrew Cadwallader, said: “However, we're starting to see the gap between asking price and final sold price widen, so it’s really important that we have conversations with our vendors about the importance of setting a realistic asking price in the current market to help set expectations and reach a sale.
''The era of historically low interest rates looks to be over, which is making it more challenging for new first-time buyers stretching themselves financially to try and get out of the frenzied rental market and onto the housing ladder.”
“However, compared to the volatility of a few weeks ago, mortgage rates have now started to stabilise and fall. As this week’s interest rate rise was expected, and the Bank of England has warned of further rises, we don’t think we’ll see any significant changes to new fixed rate deals based solely on this latest rise,” added Russell Griffin, co-director, and Midlands Regional Executive for Propertymark.