The property market is in ‘a cooling phase’, with drops in demand and sales going beyond regular seasonal changes, Propertymark has suggested.
The report from Propertymark found that the number of properties for sale in November dropped by 14 per cent in November, to a little over 30 properties on average at member estate agent branches.
Over the month, an average of just six new homes were placed on the market per member branch, a sharp drop of 26 per cent on October. Propertymark noted that supply had decreased month-on-month since August, and that while there were seasonal trends at play, “the market is clearly in a cooling phase”.
The number of sales agreed through member branches also dropped over the month, to a little under six on average. Again, Propertymark noted seasonal factors, though pointed out that this remains lower than the average number of agreed sales in both 2022 and 2021.
Despite this, the trade body found a moderate increase in agents reporting properties selling at asking price, though it argued there was still “some way to go” in aligning valuations and market expectations.
The average number of registered buyers has continued to decline. The number of registrations fell to 49 from 53 in October, a trend that has been taking place for some time. Back in November 2021, for example, it stood at a little under 80 registered buyers on average.
In the rental market, Propertymark found that demand from tenants has remained static, while there remains a shortage of supply. There are an average of nine prospective tenants registered per available rental property at member branches.
Nathan Emerson (pictured), CEO of Propertymark, said that there are strong indications that the market is cooling in general, with the majority of members reporting that properties continue to sell for less than asking price.
He continued: “Looking forward to December, we are likely to see the entrenchment of seasonal trends as we head towards the end of 2024.”
John Fitzsimons is a freelance journalist and has been writing about money since 2007. A former editor of Mortgage Solutions and loveMONEY, he has written for titles including the Mirror, the Sunday Times, the Sun and Moneyweek, covering everything from bank accounts and mortgages to football season tickets and rare coins.