New data indicates that the “chaotic” state of the mortgage market has resulted in properties lingering on the market for longer periods, compelling sellers to reduce their listing prices.
Rightmove reports a slight decrease in average listing prices by £82 this month, marking the first June drop since 2017.
In addition, according to separate data from the property platform OnThe Market, over half of the properties now exceed a month before attracting an offer. The percentage of homes requiring more than 30 days to receive an offer has surged from 39% last month to 58% presently.
Mortgages to go up by an average of £2,900 a year, for 800,000 customers
The tumultuous mortgage market, characterized by soaring rates, has left potential buyers unsure about their borrowing capacity, contributing to the sluggish market. Rightmove suggests that this instability is causing uncertainty among those planning to move, with further changes anticipated this week.
The average two-year fixed rate is projected to surpass 6% after peaking at 5.98% on Friday, as per Moneyfacts.
Furthermore, an even steeper ascent is anticipated, with the Bank of England predicted to increase its base rate to 4.75% this week. Financial markets speculate it could potentially reach as high as 6%.
