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In July, UK house prices experienced a rebound after a decline in June, reflecting a recovery driven by increased buyer demand and a rise in housing supply. According to the latest data from property website Zoopla, there has been a 20% increase in buyer demand and a 23% rise in agreed sales so far in 2024.
The Zoopla House Price Index (HPI) reports a 1.4% rise in house prices for the first seven months of the year. Projections suggest that by December, prices could see an overall increase of 2.5% since the start of 2024. Despite this positive trend, the year-over-year growth rate for July stands at just 0.5%, reflecting the slower price performance during the latter part of 2023.
The market is currently seeing a notable increase in housing supply, with the number of homes available for sale reaching a seven-year high. On average, estate agents listing properties on Zoopla have around 33 unsold homes, indicating a robust market supply.
However, sellers should be aware that achieving the asking price may be challenging. Zoopla's findings show that one in five homes are experiencing price reductions of at least 5%. Properties that are "incorrectly priced" are taking more than twice as long to sell, underscoring the importance of setting competitive prices in the current market environment.
Richard Donnell, executive director at Zoopla, highlighted that the momentum in the sales market is growing as mortgage rates continue to decline and more sellers feel confident enough to list their homes. While the increased choice for buyers is expected to support higher sales volumes, it will also likely temper the rate of price increases.
Overall, the housing market is showing signs of improvement with rising demand and increased supply, though the impact on prices remains moderate. This dynamic environment suggests a balancing act between buyer preferences and market conditions.
