August's House Price Index: fixed mortgage rates fall

This month’s House Price Index shows that pricing your home correctly is more important than ever! The summer holidays, inflation concerns, and higher interest rates are all potential obstacles to winning the desired attention of buyers during the summer, that’s why it’s important to work with a great agent to market your property accurately from the get-go. 

Despite the 1.9% decrease in asking prices this month shown in this month’s Rightmove House Price Index, house prices are still 19% higher than those in August 2019, with improved affordability emerging due to increasing average earnings and a trend of lower mortgage rates.

Over the last month, the average five-year fixed mortgage rate fell from 6.08% to 5.81%, and with lenders like Halifax cutting fixed rate deals by 0.71%, which you may not have heard about on the news cycle, it suggests a move towards improved affordability.

Competition for properties remains high, with those that are priced correctly from the start being more likely to attract buyers quickly, taking an average of 27 days to find a buyer compared to 66 days for those that require a price reduction. 

If you're a buyer, the recent change in average asking prices, coupled with rising earnings and lower mortgage rates, presents an improved affordability outlook. This could offer a chance to explore a wider range of properties, particularly in the first-time buyer sector.

Remember, the market remains competitive, you may have to make quick decisions to secure your ideal home. Working with a reputable agent like Redbrik will help you move into swift action to take advantage of the current opportunities on the property market. 

We are still being asked if now is a good time to buy, and when you consider all the factors, it really is and it certainly doesn't look like it is going to be much different now, than in a year’s time, so why wait?

If you're a seller, the recent 1.9% decrease in average asking prices emphasises the need for competitive pricing strategies to attract buyers in the current market. Properly priced homes tend to sell faster, while overpriced properties risk standing out negatively. 

We will work closely with you to set appropriate prices, ensure your property is well-presented, and keep you informed about local market trends, to navigate the evolving property market and maximise the potential for the successful and timely sale of your property.

Interested in selling your property with Redbrik? Book a free valuation today.