Manage episode 300157241 series 2112440
House prices have fallen for the first time this year, according to property website Rightmove, but does this mean we are heading for a market crash?
The website reports that the “average price of propertycoming to market in August fell 0.3%”, which is a small drop of £1,076, to £337,371.
The property market slowdown follows the ending of the stamp duty holiday and a subsequent fall in demand for bigger homes.
"Average prices have only fallen in the upper-end sector," said Tim Bannister, Rightmove's director of property data.
First-time buyers and second-stepper properties are still in demand, leading to new record high average prices in those sectors, he added.
Rightmove figures revealed a 0.8% drop in the four-bedroom-plus sector, but new record price highs in the two-bedroom sector, up by 0.6%, and three to four bedroom second-stepper-type properties, up by 0.3%.
Summer holidays normally lead to a slowdown in activity in August, experts pointed out, with many anticipating a slackening in demand. Source: BBC and Rightmove.
The small property price falls, based on new houses coming onto the market, do not yet indicate a market crash. Minor price fluctuations could be seasonal or influenced by a post-stamp duty holiday slowdown.
Property investors should see a return to a more normal buyers property market in the coming months. I am definitely noticing more price reductions and properties coming back on the market after a sale fell through.
However, markets, like the bond and stock markets, are not always rational and frequently react to external events, such as a war or political instability in the Middle East.
The actual figures based on sold properties for the current period will be revealed in official Land Registry data later this year.
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