Jun
23

Signs the market may be beginning to cool

This article from the Property Reporter suggests there are early signs the property market is beginning to cool according to new data from Rightmove. This month saw a 0.8% increase in property prices, lower than the 1.8% increase in May and the 2.1% increase in April. However, it remains the largest rise at this time of year since 2015.

Tim Bannister, Rightmove’s Director of Property Data, says: “Buyer demand remains very strong, though, with an all-time low in the number of properties available for sale on estate agents’ books and new stock at higher than ever average prices, there are early signs of a slowing in the frenetic pace.

"Since the market re-opened last May in England we have seen huge jumps in the numbers of sales being agreed, but these are now rising at a slower pace. Record low-interest rates and stamp duty tax reliefs have helped many to afford higher prices, satisfying their pent-up desires for a new home fit for a new era. Some of that demand has now been met, and the phasing out of stamp duty reliefs has also taken away some of the urgency to move, though our high traffic and search data indicate that there is still strong buyer demand.

"However, higher prices combined with a lack of fresh choice coming to market are reducing some buyers’ ability or desire to move, and while we expect the market to remain robust, there are early signs of a slackening in the incredible pace of activity that we’ve seen over the last year. This super-charged activity cannot go on forever, but we expect the market to remain vigorous for at least the remainder of the year.”

Read more here.