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Monday, October 17, 2016

Rightmove's HPI sees north/south divide

The Rightmove HPI for Octobert shows a rise of 0.9% (+£2,623).

The national average property is now at £309,122, just 0.4% (£1,349) down on the record high of June this year. 

However, the market varies across regions and sectors, with different areas of the country and different sectors experiencing contrasting market conditions. 

The north seems to be fairing better post-brexit than the south. 

Miles Shipside, Rightmove director and housing market analyst comments: 

“After the referendum result and the usual summer slowdown, estate agents’ experiences appear to fall into one of two camps, with a definite north/south divide. Agents in the northern half of the country reported a quiet week or two after the surprise result of the Brexit vote, but most then saw a quick return to good levels of buyer enquiries and subsequent sales agreed. In contrast many in the southern regions saw more prolonged hesitancy among buyers, with it taking until September before a marked pick-up in activity. What has continued is the overall upwards trajectory in the average price of property coming to market, underpinned by years of inadequate new-build supply. After some price falls over the quieter summer period, the national average is now less than a couple of thousand pounds shy of its all-time high recorded in June.”

The North sees rising sales

“While the number of new-to-the-market sellers is actually up compared to this time last year in all the northern regions, it is failing to keep pace with high buyer demand. Agents report brisk sales in many areas, especially in the mass-market sectors. They say as long as it’s not over-priced, the right house in the right area is quickly being snapped up for close to, at, or even over the asking price.”
The South see falling sales

“This increase in the number of properties up for sale should not be misinterpreted as a glut of unsold property, but rather as an increase from the very low number of properties that agents have had on their books in the last few fast-selling years. While there is still underlying high demand in mass-market sectors, some find that affordability has become over-stretched while others judge that prices have risen beyond their true value. While many properties are still selling, in market sectors where there is now a lot more choice, buyers need enticing by an attractive price or by properties with special finish or appeal. If sellers fail to take this into account, then buyers will choose to buy elsewhere or bide their time.”

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