Sales prices of newly listed homes fall by £12,000 in two months, says Rightmove

Sales prices of newly listed homes have fallen almost £12,000 in the last two months, Rightmove data shows.

The average selling price fell for the second consecutive month in December, falling from £366,592 to £360,197, a fall of 1.7 per cent.

This follows on from the previous month, which saw average selling prices fall by £5,366 between October and November, equivalent to a fall of 1.4 per cent.

This means that in the last two months, the typical asking price of a new listing has fallen by £11,761.

While this seems like a big drop, according to Rightmove, it is broadly in line with the seasonal norm in the run-up to Christmas.

This is because buyers tend to postpone their plans until the new year and the pricing power of sellers decreases as Christmas approaches.

However, despite the festive lull, activity remains substantially stronger than the same period last year, according to the real estate portal.

It says the number of agreed sales increased by 22 per cent and inquiries from new buyers increased by 13 per cent.

Tim Bannister, property expert at Rightmove, said: “New sellers in December have to work especially hard to catch the attention of buyers distracted by the Christmas holidays and festivities, and the average monthly fall of 1.7 per cent is an appropriate gift for those who are We still buy houses instead of gifts.

“Despite this monthly drop, prices have increased compared to this time in 2023, broadly in line with our prediction of a 1 percent price increase this year.”

There is also evidence that some buyers are trying to beat the looming stamp duty deadline of 31 March and sellers are reacting to this by choosing to get on the market now.

Sellers of smaller properties in higher priced areas are trying to negotiate or simply sell before the deadline to avoid the higher stamp duty charges, even though they now need to act very quickly.

This is because the threshold at which people moving house start paying the tax is falling from £250,000 to £125,000 and means anyone buying a property over £125,000 will pay up to £2,500 more in stamp duty.

Prices are also holding up better in the first-time buyer sector, especially for homes priced below the £300,000 threshold.

In the last four weeks, the number of sellers coming onto the market for typical one- and two-bedroom homes for first-time buyers in London has increased by 20 per cent, according to Rightmove, the most of any sector of the regional market.

In second place is the Southeast, where one- and two-bedroom homes coming onto the market are up 16 percent, also the second most expensive region.

The price at which stamp duty will begin to be charged to first-time buyers will return to £300,000, from its current level of £425,000.

For first-time buyers, this could mean that instead of paying no stamp duty on a purchase valued at £425,000, they will soon pay £6,205.

Costs rise further for any first-time buyer purchasing a property worth between £425,000 and £625,000.

A first-time buyer purchasing a house worth £625,000 currently pays £10,000 in stamp duty. But from April 1, that figure will rise to £21,250, an increase of £11,250.

Interestingly, prices are holding up stronger for first-time properties in more affordable areas, which will be less affected by the stamp duty changes, as most first-time homes perhaps they are well below the £300,000 tax that is resumed. limit.

Prices for typical first-time buyer homes in the North East rose 1 per cent this month, sharply contrasting this month’s 1.7 per cent national fall across all property types.

Take advantage of the Boxing Day boom?

Last year, Boxing Day saw a record number of new sellers hit the market for that time of year, giving buyers new property options.

Meanwhile, buyer inquiries increased by 273 per cent between the Christmas Day break and Boxing Day.

Rightmove’s Tim Bannister expects a similar story to emerge this year.

“We are now looking ahead to Rightmove’s traditional Boxing Day bounce in moving activity, which has increasingly become a key date in the housing market calendar,” he said.

‘Every year, our real-time data can pinpoint the exact moment when the turkey runs out, family games lose steam, mobile devices are used and prospective movers turn to Rightmove and begin their move by 2025.

“If this year is anything like the last few, those early birds who start their search the day after the festivities end will likely be rewarded with plenty of new property options to consider.”

Steven Holden, director of estate agency Holden Copley in Nottingham, added: “Naturally, December brings a seasonal slowdown in new properties for sale as many focus on the holidays.”

‘However, we expect the traditional post-Christmas surge in activity to boost the new year, with Boxing Day marking the start of a busy period.

“Getting a valuation now or in early January will help put potential sellers in a strong position to take advantage of buyers who are actively looking for correctly priced properties.”