Rightmove’s June 2024 Market Analysis: What You Need to Know

If you're finding the latest Rightmove House Price Index a bit overwhelming, don't worry - we've simplified it for you!  Our deep dive and analysis break down all the key points. Whether you're a buyer, seller, or landlord, understanding these trends can help you make informed decisions in today's property market.

Market Maintains Momentum Despite Tentative Top-End

In the latest Rightmove House Price Index, the average price of property coming to market has seen a negligible drop of just £21, holding steady at £375,110. This stabilisation follows a record high in May and aligns with the typical seasonal pattern of recent years.

Regional Price Trends

Interestingly, while the overall market remains flat, there are notable regional variations:

• Strong Growth in Affordable Regions: Five of the six least expensive regions have hit new price records this month. These areas, predominantly in the North, are showing robust price growth.
• Lagging High-Priced Areas: In contrast, the East of England and London are experiencing slight declines in property prices, making them the only regions to see falls this month.
• South West Stability:  Here in the South West, the market continues to demonstrate stable prices, reflecting a balanced market where both buyer demand and property availability are aligning well.

Impact of the Election

The recent surprise announcement of a General Election has had a mixed impact on the housing market:

• Stable Buyer Activity: Buyer demand has remained resilient, with a 5% increase in enquiries compared to last year. Sales agreements are also steady, up by 6% from the same period in 2023.
• Seller Hesitancy at the Top-End: There has been a slight dip in new listings, especially in the higher-end market. The number of top-end sellers bringing properties to market has decreased by 3% in the last two weeks, following an 11% increase in the preceding fortnight.

Mortgage Rates and Affordability

High mortgage rates continue to be a significant concern for prospective buyers:

• Current Rates: The average five-year fixed mortgage rate is now 5.04%, slightly up from 4.94% in January.
• Future Outlook: With mortgage rates remaining elevated, potential buyers and movers are closely monitoring when the Bank of England might implement a rate cut, which could offer some relief.

Market Resilience and Election Influence

Despite the political uncertainty, the housing market has shown resilience:

• Historical Trends: Historically, election periods have not dramatically disrupted market activity, and current data suggests a similar trend.
• Majority Unfazed: A Rightmove poll of over 14,000 respondents indicates that 95% of those planning to move are undeterred by the election, reinforcing the notion that the market is largely continuing as usual.

Expert Insights

This is what Tim Bannister, Rightmove’s Director of Property Science, has to say:

“It’s always difficult to predict how home-movers will react to sudden uncertainty, but looking back through our data, we can see that during previous election campaigns, market activity has remained largely steady. This election has followed a similar pattern so far, and the responses from our poll of over 14,000 people also supports the data, with the vast majority of respondents saying they will carry on with their home-moving plans.”

Looking Ahead

While some potential sellers are adopting a wait-and-see approach, the general market sentiment remains positive. The focus for many is on the anticipated Bank of England rate cuts, which could significantly impact mortgage affordability and overall market confidence.

Final Thoughts

For buyers, sellers, and landlords in Devon and the South West, understanding these trends is crucial. The market’s resilience, coupled with regional variations, offers both opportunities and challenges. Staying informed and responsive to these dynamics will be key to navigating the current housing landscape.

If you want to know how your property aligns with current market trends or would just like a general chat about the market, we'd love to hear from you. Give me a call on 01363 777999 or email me directly at rob@helmores.com.

Stay tuned for more updates and insights as we continue to monitor the market’s response to evolving economic and political conditions.