The average asking house price dropped in June for the first time this year.
According to Rightmove’s latest House Price Index the fall was just £82, bringing the figure to £372,812. It is also the first drop seen in the month of June since 2017.
Despite May’s average house price increase of 1.8%, growth has slowed to 1.1% over the past year and Rightmove predicts an overall 2% annual drop in new seller average asking prices by the end of 2023.
House price movements varied considerably across different parts of the country.
Regionally, in the West Midlands, average asking prices were 1.1% up on last month to £291,937, representing a year on year growth of 2.5%.
In the East Midlands, average asking prices were up 0.4% on last month to £426,365, but down year on year by 0.1%.
Despite some significant increases in mortgage interest rates over the last few weeks, Rightmove’s statistics currently show no effect on buyer demand but a slight impact on sales activity.
Buyer demand over the last two weeks is 6% higher than the same period in 2019’s more normal market.
The number of sales being agreed has dropped marginally, and in the last two weeks is 6% behind the same period in 2019 compared to being 3% behind in May.
Ahead of this week’s inflation figures and Bank of England Base Rate decision, the average rate for a five-year fixed 85% Loan-to-Value mortgage is 5.2%, up from 4.56% four weeks ago.
Sheldon Bosley Knight’s director of residential sales, James Morton, said: “House prices appear to be pretty stable in our areas at the moment and we are not experiencing a shortage of buyers.
“However, it is clear the market is still recovering from the disastrous mini budget of last year and responding to the increases in both the Bank of England base rate and inflation.
“The days of low interest rates appear to be over and we are going to have to start accepting rates of about 5% are the norm.
“Buyers are understandably cautious about the rise in borrowing costs but it is not putting off those who really do want to move and as long as property remains correctly priced, we believe sales can be achieved.
“As ever if you need any advice or help please do get in touch and if you would like a free, no obligation market appraisal we would be happy to do that for you.”