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5 reasons we’re in a buyers’ housing market

Our monthly House Price Index takes a real-time look at what’s happening with property prices, as well as other trends playing out in the housing market. And most importantly, what these trends might mean for you if you’re thinking about moving soon. 

The autumn selling season is one of the busiest times of year for the property market, as lots of people use the time between the end of the summer holidays and the busy festive season to find their next home.  

This year we’ve seen lots of activity, with the number of sales agreed 29% higher than in the quieter market we were seeing at this time a year ago, and 17% more people enquiring about homes for sale. But while the market remains busy, we’re by no means seeing the frenetic market we saw in the aftermath of the pandemic, when lots more people were looking to move than there were homes for sale. This year, would-be buyers are in a better position to take their time finding the home that’s right for them, at the right price. 

Our property expert, Tim Bannister, says: “With the ball in the buyer’s court and the pick of a big crop to choose from, sellers need to be pricing competitively to find a buyer, particularly with affordability still very stretched. Some sellers appear to be acting on this caution, contributing to limited price growth and better buyer affordability. This is helping to keep the number of sales being agreed consistently and strongly ahead of the quieter market of this time last year.” 

So, why are we in a buyers’ market? 

1. House price growth has been lower than average this month 

Average asking price growth is a good indicator of how confident sellers are feeling when putting their homes on the market. If you’re looking to get an idea of what your home is worth, our instant valuation tool will give you an instant estimate online, while a local estate agent, who’s an expert in your local area and market, can arrange an in-person valuation. 

While house prices have gone up this month, the 0.3% increase is far lower than the usual 1.3% growth we usually see at this time of year. 

Month Average asking price Monthly change Annual change
October 2024 £371,958 +0.3% +1.0%
September 2024 £370,759 +0.8% +1.2%

2. Sellers are needing to price their homes competitively 

Sellers listing their homes are needing to make sure they are at a level that will attract buyer interest. Otherwise, they could need to make a reduction later down the line.   

3. The number of homes available for sale is 12% higher than a year ago 

Buyers have much more choice than they did in previous years, and in fact, the average number of listings per agent is at the highest it’s been since 2014. More choice of homes also means more competition between sellers, eager to be the home that stands out on a buyer’s property shortlist. 

4. Homes are taking longer to sell 

This increase in the choice of homes available means buyers are taking the time to find the home that’s right for them. The national average time for homes to sell is currently 61 days, which has edged up from 60 days last month, and 59 days in August.  

5. Affordability pressures on buyers 

Our recent study found that average first-time buyer mortgage payments are currently £350 higher than they were in 2019, despite falling by £150 since mortgage rates peaked last year. And energy bills remain high, increasing by 10% at the beginning of October under the latest price cap change. Some affordability-stretched buyers may also be waiting for the certainty that will come from the government’s Autumn Budget before kick-starting their moves.   

Tim adds: “We’re not seeing activity slow down, but some estate agents report that some movers are now waiting for Budget clarity and anticipated cheaper mortgage rates later this year. However, others state that movers are largely just getting on with plans”. 

What could happen next year?

Before the end of the year, we’re due to hear the Autumn Budget announcement, and two more Bank of England decisions on what should happen to interest rates, which could have an impact on housing market activity going into next year.  

Tim says: “Despite a Budget-shaped cloud on the horizon, the big picture still looks positive for the market heading into 2025. Market activity remains strong, despite affordability pressures on movers. Once we have more certainty about the contents of the Budget, hopefully followed by speedy second and third Bank Rate cuts, we could see another surge in market optimism like we had in the Summer.” 

The header image for this article was provided courtesy of Starkings & Watson, Poringland.

READ MORE: 10 quickest sellers markets revealed


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