Buyers and sellers spot window of opportunity as Autumn property action starts early(Image: Getty Images)

Property prices on the up as sale agreements soar by 27%

The number of sales being agreed is up by 27% year on year

08 Oct 2024, 10:17 by Tina Penberthy-Hutchings · DevonLive

The average price of property coming to the market for sale rose by 0.8% last month (+£2,974) to £370,759, according to property website Rightmove. September nearly always sees a rise in prices from August, but this year’s increase of 0.8% is double the long-term average.

This rise in prices beyond the usual seasonal norm has been driven by a strong recovery in activity this summer when compared with the much more subdued market at this time in 2023.

The property website said it appears that the traditionally busier autumn market has arrived earlier than usual, with many buyers and sellers spotting a window of opportunity to act.

Mortgage rates are trending downwards, with factors like more property choice for buyers and earnings rising faster than both inflation and house price growth all contributing to better conditions for moving.

Nick Smith, Stags partner and Exeter office sales manager(Image: @ Stags)

Nick Smith, Stags partner and Exeter office sales manager said: “Our Exeter office reports an improvement in the market from July through to September with a 10% increase in viewings and an impressive 14% increase in offers. These positive statistics may be reflective of buyers waiting for the election to be over before deciding to move.”

However, despite some strong headline figures this month, beneath the surface the market remains cautious, with pricing right still key for a successful sale.

Roger Punch FRICS, consultant to Marchand Petit said: “The autumn property market has been highly price sensitive and this a consensus backed up by the highly-regarded monthly Residential Market Surveys of the Royal Institution of Chartered Surveyors (RICS).

“Price even 2% more optimistically and it becomes quite possible that potential buyers won’t view and a sale will not be achieved. By comparison, competitively priced properties continue to attract and sell.”

Roger Punch FRICS, consultant to Marchand Petit(Image: Copyright Unknown)

The number of sales being agreed between buyers and sellers is up by 27% compared to this time in 2023, a strong rebound compared with last year’s more subdued market.

In positive signs for future sales, the number of potential buyers contacting agents is also up by 15% compared with this time last year. Buyer choice has been improving, and the average number of available homes for sale per estate agency branch is at its highest since 2014, at 33 homes.

This has come from a 14% increase in new properties coming to the market for sale compared with last year, but there still isn’t a glut of homes for sale, as this figure is only up by 3% when compared with the more normal pre-pandemic 2019 market.

Despite these strong figures, there are signs that the market is still cautious and price-sensitive. The average property is still taking 60 days to find a buyer, which is three days longer than at this time last year even with better market conditions. This suggests that value-conscious buyers are taking their time to find the right home at the right price, leading to a two-speed market.

Get all the latest Westcountry property updates, including dream homes and picture-postcard villages, when you sign up for our free newsletter here.

Attractive homes priced accurately are likely to be met with interest from buyers quickly, while overpriced or poorly presented homes may languish on the sidelines.

Additionally, though the downward direction of mortgage rates is welcome for mover sentiment, they remain high when compared with the period from 2008 to 2022.

Rightmove’s weekly mortgage tracker shows that the average 5-year fixed rate is now 4.67%. While this is lower than the peak of 6.11% in July 2023, it is still nearly double the 2.34% of this time three years ago, before the first of 14 consecutive Bank Rate rises.

While some can afford to move and are seizing the current window of opportunity to act, others will still need to wait for mortgage rates to reduce and affordability to improve further.

Tim Bannister, Rightmove’s director of property science said: “Early autumn movers who are acting quickly and taking advantage of the improved market conditions are getting the pick of quality homes for sale.

“Home-owners who are thinking of coming to market soon shouldn’t let the increased activity make them over-optimistic and must price competitively to sell. With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price.

“There are question marks over how the market will be affected by announcements in the Autumn Statement, but until then we expect that market momentum will continue as the autumn action rolls on.”