Vendors and estate agents are being urged to get their pricing right ahead of an expected September “autumn bounce” in the housing market.

It comes as Zoopla warns that high mortgage rates and political uncertainty have contributed to a sharper than usual summer slowdown.

The portal’s latest House Price Index found sales agreed are down 9% annually during the past four weeks, with the North East the only region bucking the trend where average values are up 4%.

House price inflation has slowed to 1.3%, down from 1.7% a year ago.

The average value of a home in Britain currently stands at £272,800, according to Zoopla.

Regional hotspots

There are still localised hotspots, according to the report.

Almost three-quarters of local markets – at 76% – are registering fewer sales than a year ago in the past three months, with just under a quarter – at 24% – seeing sales agreed hold up or grow.

September is when the market typically turns, and pricing to meet buyers now is what tends to get deals done.”

Behind the regional averages, some of these markets stand out from both the national and their own region’s trend.

Hull, Dundee and Warrington have seen house prices rise on average by 2.2%, 2.4% and 3% respectively.

Autumn bounce

Realistic pricing remains key, with Zoopla saying that the share of homes cutting their asking price by 5% or more consistently peaks in September – based on the past three autumns. This the same month sales activity typically recovers from its summer low.

Zoopla warns that homes still sitting at their spring asking price typically miss the autumn “bounce.”

Almost a third – at 30% – of homes for sale today were listed back in the second quarter and remain unsold with no price cut, the portal said.

Commenting on the report, Richard Donnell (pictured), Executive Director at Zoopla, says: “This summer has seen a sharper slowdown than usual, with higher mortgage rates and political uncertainty both weighing on buyer confidence. But it’s not all one-way traffic, sales are still getting done, house prices are still rising in most of the country, and buyers have more room to negotiate than they’ve had in some time.

“Conditions can vary sharply from place to place with almost three-quarters of local markets have seen sales fall over the past three months, but a quarter are bucking that trend entirely. Sellers should speak to a local agent who knows what’s actually happening on their own patch, rather than relying on the national picture.

“For anyone who doesn’t need to move, it’s entirely reasonable to wait and see how things settle. But for those with a genuine need to sell, our data shows September is when the market typically turns, and pricing to meet buyers now is what tends to get deals done, rather than waiting to see what autumn brings.”

Source: THe Negotiator