The Biggest June Price Drop in 14 Years. Should Sellers Be Worried?
The biggest June house price drop in 14 years has just been reported. But does that mean the market is slowing down, or simply becoming more realistic? We take a look at the latest Rightmove data and explain what it means for buyers and sellers across Kent and South East London.
If you've been keeping an eye on the property market recently, you'll probably have noticed two things.
Firstly, there are plenty of homes coming onto the market.
Secondly, buyers seem to be taking their time.
The latest House Price Index from Rightmove suggests we're seeing the earliest signs of the traditional summer slowdown, with asking prices falling by 0.6% during June. That's the biggest June drop they've recorded in 14 years.
But.... before anyone starts predicting a property crash, let's add some context.
More Choice Means More Competition
One of the biggest factors affecting the market right now is the sheer number of properties available for sale.
Buyers have more choice than they've had for quite some time, which means they're being more selective. If a property isn't priced correctly or doesn't stand out against the competition, buyers simply move on to the next one.
In fact, Rightmove reports that more than one in three newly listed properties aren't going on to sell.
That's a striking statistic. Not because buyers have disappeared, but because buyers are no longer willing to chase unrealistic asking prices.
The South East Is Feeling It
For homeowners across Kent and South East London, the regional figures are particularly interesting.
The South East saw asking prices fall by 1.0% during June and sit 1.6% lower than a year ago. Average asking prices across the region now stand at £484,819.
That sounds negative on the surface.
However, what's actually happening is a market correction.
The best priced homes are still attracting viewings, generating offers and progressing to sale. The properties struggling tend to be those that have been launched at aspirational prices based on a 'test the market' strategy or what the owner hopes to achieve rather than what buyers are prepared to pay.
Buyers Haven't Gone Anywhere
Despite headlines suggesting the market is slowing, buyer activity remains relatively steady.
Sales agreed are only 6% lower than this time last year and are broadly in line with recent market conditions.
We're seeing exactly the same locally, serious buyers are still out there.
They still need to move, they still have mortgages agreed in principle, they still have school catchment areas, job relocations, growing families and life events driving their decisions.
The difference is they're taking longer to make those decisions because they have more options available.
Mortgage Rates Continue to Improve
There is some encouraging mortgage news too.
The average two year fixed mortgage rate has fallen from 5.18% to 5.07% over the last month, reducing the average monthly mortgage payment by around £30.
It's not a dramatic change, but it does help affordability and, more importantly, confidence.
Property markets don't just run on numbers. They run on sentiment.
When buyers feel more confident about borrowing costs, activity tends to follow.
What Does This Mean If You're Thinking of Selling?
The message is actually quite simple.
This isn't a bad market.
It's a realistic market.
The days of sticking a property online at any price and waiting for a bidding war have largely gone.
Today's sellers need a strong marketing strategy, professional presentation and, most importantly, sensible pricing from day one.
Get those things right and there are still buyers ready and waiting.
Get them wrong and your property can quickly become one of the growing number of listings sitting on the market with little interest.
The Bottom Line
The latest Rightmove figures don't tell us that the market is collapsing.
They tell us that buyers are in a stronger position, choice is higher and pricing matters more than ever.
For sellers, that's not bad news.
It's simply a reminder that strategy beats optimism.
If you're wondering what your home is really worth in today's market, or you're thinking of moving in the next 6 to 12 months, now is the perfect time to get an up-to-date view of local buyer demand and market conditions.
At The Property Cloud, we're helping homeowners across Bexleyheath, Welling, Dartford and the surrounding areas navigate a market that rewards the right approach.
Because in a market like this, getting the price right isn't just important, It's often the difference between moving or not.
