This £2,113 price drop means the typical price of a newly listed home in the UK, according to the property website, is now £376,191.
But while this may not be good news for sellers, it does provide a great opportunity for buyers at what is typically a quieter time for property market activity.
According to Rightmove, summer is usually slower than spring, and this year there are big sporting events such as the FIFA World Cup to distract buyers, along with holidays and hot weather.
In fact, June typically sees a slight increase in prices, so this drop suggests that many new sellers were adjusting prices in response to the record number of homes available for this time of year.
In its report, Rightmove stressed the importance of pricing properties correctly in this type of market, where buyers are naturally more selective.
Colin BabcockRightmove’s property expert believes this unseasonal drop in prices is due to a combination of factors, including wider economic uncertainty, the timing of the May bank holiday, an unusual heatwave, and the large number of homes on the market.
“In this type of market, sellers need to work harder to get noticed,” she said. “Setting a competitive asking price from the beginning is key, as buyers take more time to compare options and are quicker to move on if the home doesn’t stand out in terms of value.”
“When sellers are overly optimistic about price and find they need to reduce later in the sale, it can be difficult to regain momentum, underscoring how important it is to get pricing right from day one.”
How do mortgage rates affect real estate sales and prices?
According to Rightmove, high mortgage rates continued to impact activity.
Rightmove’s daily mortgage tracker showed that the average two-year fixed rate fell to 5.07% from 5.18% last month, bringing the average monthly mortgage payment down by around £30.
Matt Smith “It’s encouraging to see mortgage rates coming down a bit, and even relatively small reductions can make a difference to buyers’ budgets,” Rightmove’s mortgage expert said.
“Although interest rates are still higher than the lows of recent years, they have been relatively stable over a long period, which helps provide more certainty for those planning the move.
“There is still some fundamental volatility in the economic and global market, which means interest rates may move slightly in either direction from here. However, the key takeaway for buyers is that we are currently in a period of greater stability than we have previously experienced, and this stability can help support confidence, especially for those who are approaching the limits of affordability and considering their next move.”
