Why heatwaves, summer holidays, the World Cup and the political distractions have made asking prices more realistic
The property market has had a more distracted summer than usual.
The latest Rightmove House Price Index shows that the average asking price of a newly listed home fell by 1.0% in July, down £3,832 to £372,359. A price fall in July is not unusual, but this month’s drop was much larger than the typical 0.2% July fall seen over the past decade.
Rightmove echos our experience locally across Dorset, pointing out the key reasons: the normal summer holiday slowdown, the World Cup, unusually hot weather across May, June and July, and political distraction around the change of Prime Minister.
That combination has taken some urgency out of the market. But it has not stopped the market.
Our offices in Christchurch, Southbourne, Highcliffe and Bransgore, all report that people are still moving. The pace is more measured, buyers have more choice, and asking prices need to be carefully considered – but good homes in good locations continue to attract serious interest.
This is about asking prices, not necessarily falling values
It is important to be clear about what the Rightmove figure tells us.
Rightmove is measuring the asking prices of homes newly coming to market. It is not measuring the final sale price agreed after marketing, negotiation, survey and legal work.
That distinction is particularly important in our area.
A 1.0% fall in asking prices does not mean every property in Christchurch, Southbourne, Highcliffe or Bransgore is suddenly worth less. In many cases, it means sellers are being more realistic at the point of launch.
That is a sensible response to current conditions.
Buyers have more choice than they have had for some time. Rightmove says the number of homes available for sale is slightly below this time last year, but still very close to a 12-year high for the time of year. When choice is high, buyers compare more carefully and are less likely to rush unless a home stands out.
That is what we are seeing locally.
A local market shaped by lifestyle
