Market Update: Seasonal Changes with Encouraging Signs for 2025

As we approach Christmas, Rightmove's latest House Price Index confirms a softer-than-usual seasonal uptick in asking prices. However, compared to last year’s subdued market, activity has rebounded significantly, setting the stage for what could be a brighter 2025.

Key Takeaways from the Rightmove Data:

  • Asking Prices: Average new seller asking prices rose by just 0.3% (£1,199) this month, reaching £371,958. This is far below the usual 1.3% October rise, reflecting a market where buyers now hold greater negotiating power due to higher stock levels.
  • Sales Agreed: Sales agreed are 29% up year-on-year, showing strong recovery from 2023.
  • Buyer Demand: Enquiries from potential buyers are 17% higher compared to last year, underlining a robust interest in moving despite affordability challenges.
  • Stock Levels: The number of available homes for sale is 12% higher than last year, the highest level per agent since 2014, giving buyers a much wider choice.
  • Mortgage Rates: After months of falling rates, the average 5-year fixed rate has edged up slightly to 4.61%, reflecting ongoing geopolitical and financial uncertainties.

Our Perspective

The regional property market across central England mirrors much of this national sentiment. Buyers are out there, and demand remains healthy, but the growing stock levels mean sellers must price realistically to secure sales. This is especially true at the upper end of the market, where competition among sellers of large family homes is more intense, that said, there is currently more buyer activity than at any point this year.

2025 Outlook

The future looks promising. Financial markets are optimistic about further Bank Rate cuts, which could ease mortgage affordability pressures. Combined with wage growth outpacing house price inflation, this suggests the potential for more active transactions in 2025.

For those considering selling or buying, timing and strategy will be key. Sellers should act now to capitalise on pre-Christmas deals.


Assessing the Rightmove Index: Positives and Challenges

  1. Positives:

    • Sales Momentum: The market has clearly moved on from the sluggish activity of late 2023, with sales volumes and buyer demand strongly improving.
    • Improving Affordability: Wage growth coupled with the promise of lower rates in 2025 could unlock more opportunities for buyers priced out of the market.
    • Stock Availability: Increased housing supply means buyers may be inclined to take their time, considering their options, keenly priced properties will attract the most attention.
  2. Challenges:

    • Affordability Pressures: Mortgage rates, while lower than their peak, remain above pre-2023 levels, limiting purchasing power for many buyers.
    • Uncertain Sentiment: The Budget and macroeconomic concerns caused some hesitancy, particularly among first-time buyers and investors but we now have clarity.
    • Price Stagnation: With buyers having more choice, sellers have to be sensible on pricing.

Recommendations for Sellers

Sellers:

  • Price competitively to attract interest in a buyer’s market.
  • Highlight unique features of your property to stand out in a crowded marketplace.

At Chartwell Noble, we’re here to guide you through these shifting market dynamics. Whether you’re buying or selling, our expert local knowledge and innovative approach ensure you make the most of these opportunities. Let’s start planning your move today!