Elevated mortgage rates and political uncertainty have created a sharper than usual summer slowdown that has seen agreed sales drop by 9%, according to Zoopla’s July house price index.
However, the property portal is confident of a seasonal surge, based on data from the past three autumns.
“The share of homes cutting their asking price by 5% or more consistently peaks in September – the same month sales activity typically recovers from its summer low”, Zoopla explained.
“The autumn ‘bounce’ isn’t buyers spontaneously returning; it happens because sellers adjust their pricing to better align with what buyers are prepared to pay.”
Zoopla expects a pick-up in activity from September if interest rates hold. “The share of home sellers cutting price by 5% or more consistently peaks that month. Sales agreed typically register a further jump in the second half of the year as sellers adjust pricing to match demand.”
Richard Donnell, Zoopla executive director, added: “This summer has seen a sharper slowdown than usual, with higher mortgage rates and political uncertainty both weighing on buyer confidence.
“But it’s not all one-way traffic, sales are still getting done, house prices are still rising in most of the country, and buyers have more room to negotiate than they’ve had in some time.”
