House prices were described as “resilient” in the latest Rightmove House Price Index, which showed asking prices fell 1.1 per cent in the month to November, less than the seasonal average drop of 1 per cent.
However, affordability for first-time buyers was further constrained as prices of one and two-bed homes, the typical property of choice for this demographic, grew by 8.2 per cent in the year to November.
Overall, house prices increased by 4.5 per cent in the past year.
Head of lending at Mortgage Advice Bureau (MAB) Brian Murphy says the average national time to sell was 65 days, one day more than the previous month, which corresponds to the continuing lack of stock on estate agents books, with the national average being 59 properties listed per agent.
“As has been the picture for most of the year, it’s a seller’s market in most parts of the country, with year on year changes in asking prices also increasing to a national average of 4.5 per cent,” says Murphy.”
For home movers, an upwards change in asking prices is all relative, as although the price of their onward purchase may have gone up, the likelihood is that the asking price of their current property has also risen, which may mean that with increased equity in their property they may be able to put down more of a deposit on their next home, thus potentially enabling them to secure a more competitive mortgage rate on a lower LTV.
“But for first time buyers, that’s not the case and this group appear to have seen the highest rise in asking prices of 8.2 per cent on average year on year. “