August sees house prices fall for the first time this year

It’s August. And while that means it’s a popular time to get away for the summer, it also means lots of people haven’t been away – given the covid restrictions – for a few years.

In turn, this means that many people thinking about moving house will have put off their plans until the summer is over. With fewer people putting houses on the market and fewer looking to move, a seasonal price drop is usually expected now.

And it’s the first time house prices have dipped this year.

The average asking price of a home in Great Britain fell by almost £5,000 to £365,173. The 1.3 per cent drop is on par with the average August drops in the last decade.

Want a new chimney for Santa?

Christmas also affects the way some sellers price their homes.

According to Rightmove, at the moment it’s taking an average four and a half months to complete a sale. And December 25 is only 122 days away!

Sellers who want to cook Christmas dinner in their new home will be keen to find a suitable buyer fast. This means you should some homes priced competitively.

Have interest rate rises affected house prices?

Interest rates are now 1.75 per cent – and that’s going to be on the minds of those looking to buy.

But with the mismatch between strong levels of buyer demand, and the number of homes available to buy, is still the biggest factor influencing asking prices outside of seasonal trends.

Will house prices keep falling in 2022?

Autumnal months are traditionally a busy period for the housing market, bringing potential price rises as people look to move before the new year. Prices then tend to cool off again heading into December.

Check out the average asking price where you live using this handy August House Price Index report.