Homeowners looking to move urged to look ‘sooner rather than later’ as price growth slows

Will prices fall in the autumn?

Zoopla said house prices fall when there are forced sellers, which they don’t anticipate.

However, they said they do expect buyers to become more price sensitive which could lead to fewer sales and lower price growth.

The property site said this is due to the number of homeowners on fixed-rate mortgages, which protect them against interest rate rises in the short to medium-term, the stress tests carried out on those loans, and the healthy employment market.

Higher borrowing costs will start to impact new buyers.

Although house prices may not be growing as fast as they were, the rate of annual house price growth is steady.

With this in mind, owners considering whether now is the right time to put their house on the market are urged to act now according to Gráinne Gilmore, head of research at Zoopla.

She said: “Buyer demand is still strong in the housing market, but signals are emerging that the impetus may be easing, so those who want to make a move should investigate their options sooner rather than later.

“In addition, mortgage rates are likely to continue to climb, so locking into a rate shortly could save hundreds over the longer-term.

“There are many factors supporting the price growth seen since the start of the pandemic, not least the continued imbalance between demand and supply, but the increasing cost of living, increasing mortgage rates for buyers and cloudier economic outlook will act as a brake on house price growth through the rest of the year.”

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