There’s been a fall in the typical asking price of a home on sale of 2.1 per cent according to Rightmove - and that’s exactly in line with the seasonal price movement of the past six years.
However, Rightmove forecasts that there will be a two per cent average increase in prices in 2017 - a slightly more optimistic outlook than many agents and consultancies whose predictions have mostly been that prices will stagnate over the next 12 months.
There is an exception for central London of course, which the portal says will see a further five per cent slump in prices.
In detail, Rightmove says the price of property coming to market saw its usual seasonal fall this month, down by 2.1 per cent, which is equivalent to a drop of £6,511.
This is exactly in line with the average over the last six years, and so is not unexpected. The big surprise this month is the strength of buyer activity, with sales agreed up by 5.2 per cent on November last year in spite of the backdrop of Brexit uncertainty.
“As we come to the end of the year figures showing high levels of sales agreed and dwindling numbers of homes for sale give a far greater level of reassurance about the outlook for 2017 than was previously available” says Miles Shipside, Rightmove director and housing market analyst.
“Our forecast for 2017 is for modest price growth of two per cent nationally. We forecast Inner London to remain weak and prices to fall by a further five per cent in 2017, as its price bubble continues to deflate, whilst Outer London is predicted to record a similar increase to this year of circa three per cent” Shipside continues.
“As well as prices moving out of reach for some buyers, the sword of Brexit uncertainty hangs over the market, an unknown factor that may - or may not – have damaging consequences for the economy and confidence. There was a bout of jitters with the unexpected referendum result, albeit now seemingly short-lived, but more may arrive after Article 50 is invoked” he cautions.
Rightmove website visits for November this year were nine per cent up from the 101m seen in November 2015 - therer were 110m visits last month.
“This activity has fed through into a considerable rise in sales agreed, up by 5.2 per cent nationally when compared with the same month last year. All regions except London are selling at higher levels than a year ago, with three regions having increases of over 10 per cent” Shipside continues.
“They are Yorkshire and the Humber at plus 15.4 per cent, the North East plus 13.3 per cent and Wales up 11 per cent. While London is down by seven per cent, it is a considerable improvement on the 18 per cent decline measured in October” he concludes.