The latest Rightmove House Price Index shows the average asking price of a newly listed home fell by 1% in July to £372,359. While prices often dip during the summer, this was larger than the average July fall of 0.2% over the past ten years.
Buyers currently have plenty of choice, with the number of homes for sale still close to a 12-year high for this time of year. However, there are some positive signs for affordability, with the average two-year fixed mortgage rate falling from 5.08% to 4.92%.
Here in Solihull and across the West Midlands, buyers are still active, but they are taking their time and being more selective about what they buy.
The West Midlands performed better than the national picture in July, with average asking prices down 1.1% for the month but still 1.2% higher than a year ago.
For sellers, getting the price right from the beginning is becoming increasingly important. With plenty of properties competing for attention, buyers can quickly move on if they feel a home is overpriced.
Rightmove’s latest figures show that it took an average of 62 days to secure a buyer nationally in June.
Perhaps more importantly, Rightmove found that homes sold without needing a price reduction took an average of just 36 days to find a buyer. Those that needed a reduction took 127 days.
That is a huge difference and shows why launching at the right price can have such an impact on your move.
We expect the market to remain price sensitive through the remainder of the summer, particularly while holidays and other seasonal distractions affect buyer activity.
There are still motivated buyers in the market and mortgage rates have started to edge down again. Homes that are well presented, marketed properly and competitively priced should continue to attract interest.
As we move towards autumn, we would hope to see activity increase as buyers return from the summer holidays.
If you’re thinking of selling and would like to know how your property would perform in today’s Solihull market, we’re always happy to give you an honest, no-obligation opinion.
