For the first time this year, the property market has seen prices fall. On average, we usually expect a dip in August, and compared to the last decade, this year's 1.3% decline is within that average. Sellers are pricing their homes more competitively to secure a buyer quickly, with the view of closing before the Christmas holidays.
From an investment perspective, if you are looking for a quick property investment, now is the time to begin your search. The environment is less competitive, with demand softening and supply constraints showing signs of improvement. There is still a slight imbalance with buyer inquiries remaining 20% higher than back in 2019; however, that is still 4% lower than 2021. At present, listings are up by 12% when compared to August last year while overall available stock is down 39% when compared with 2019, according to the Rightmove House Price Index.
The property market is returning to its normal seasonal patterns after a two year period of dramatic changes. This summer is entirely different to that of last year, and even the year before, with buyers holidaying for the first time since the onset of the covid pandemic. One similarity is those wanting to move before the Christmas season, listing their property using a competitive pricing strategy, encouraging investors looking to diversify their portfolio back into the property space following the hot market of 2021. Despite the economic uncertainty, we still expect to see the average annual growth of 7% at the end of the year, seeing the property market follow its usual seasonal pattern.
The Property Buying Company believes investing in real estate is always smart; currently, it’s one of the investments with great potential since the market is still hot. As it stands, sellers are looking to sell fast, with prices being more competitive this month, meaning now could be a great time to lock your money in. Real estate investments offer a steady cash flow by renting out a space whether that's commercial or residential. In addition to rentals, the reason we are seeing real estate fall under investments with huge potential is from many properties yielding huge returns over the last few years. Essentially, the value of your space is growing, allowing investors to sell for a profit, and quite quickly.
Finding a property that will yield a great return stems from choosing the right place, from location, to property type. Ensure you take the time to plan what you are looking to achieve from this investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.