Number of home viewings plummets compared to last year

The housing market is in a deep freeze in mid-summer, with viewings falling off a cliff last month.

The average number of viewings per home is down 98 percent from August 2022, according to Propertymark, the leading estate agent membership organization.

In July there were an average of 1.5 viewings per available home compared to 3 viewings per home in June and 4.4 viewings per available home in both July and August last year.

Higher mortgage rates are believed to be contributing to the slowdown in viewership.

The average five-year fixed mortgage rate is 6.22 percent, according to Moneyfacts, while the average two-year interest rate is 6.76 percent.

The lowest five-year fixed rate on the market is 5.22 percent, while the lowest two-year fixed rate is 5.77 percent, according to L&C Mortgages.

These rates are much higher than in the summer of 2022.

Rightmove says average asking prices from new sellers are down 1.9 per cent this month to £364,895, the biggest drop in August since 2018.

It’s down the equivalent of £7,012, surpassing the average fall of 0.9 per cent during the traditional summer slowdown in August.

Nathan Emerson, CEO of Propertymark claims that the sales market remains good despite rising mortgage rates.

He says: ‘As viewings fall, it signals a shift to only the more serious home buyers and sellers who remain proactive in the market.

‘The properties that are now for sale with motivated market-based sellers are selling quickly.’

Jeremy Leaf, a North London estate agent and former Rics residential chairman, says that despite a larger-than-expected drop in asking prices, in many cases this has not led to an increase in agreed sales, which remain disappointingly low.

In practice, we see that realistically priced properties continue to sell relatively quickly, especially to buyers with cash or assets, while those who need discounts to attract more attention stick around.

“Certainly, continued strong employment and somewhat more stable mortgage rates are helping rates revive despite holiday distractions.”

Propertymark’s latest report also shows that while viewings have fallen significantly, the number of available homes coming onto the market is rising.

The supply of new homes for sale per brokerage firm showed a positive increase in July, now ten per affiliated agency.

As a result, the total stock of available homes per location rose slightly to an average of 38 in July compared to 32 in June.

Compared to July last year, according to Propertymark, there are 37 percent more homes on the market and the highest level of the past 12 months.

Due to the increase in supply, prices can arguably fall if buyer demand does not keep up.

The average number of registered new prospective buyers per affiliated affiliate has decreased to an average of 64 in July 2023, compared to 86 in June 2023.

Perhaps unsurprisingly, Propertymark also said that 81 percent of realtors reported home prices were selling for less than the asking price in July.