Properties are overvalued by 8% claim!

- Wed 03 Jul 2024

A recent report from the property portal Zoopla has claimed that homes currently being marketed for sale are on average overvalued by 8%, although this figure could fall if we see interest rates drop.

The portal’s latest House Price Index has analysed the extent to which actual house prices are higher or lower than an ‘affordable house price’ calculated from household incomes and mortgage rates.

It takes the average household disposable income from the Office for National Statistics and then calculates spending 25% on mortgage repayments, using average mortgage rates over a 28.8 year term to see how big a mortgage a buyer can afford compared with actual prices.

The recent jump in mortgage rates led to house prices becoming overvalued by 13% at the end of 2023, Zoopla said, but this has since fallen to 8% as of the first quarter of 2024.

Bradleys Estate Agents, Managing Director, Chris Baxter commented “2024 has been a positive year for the housing market. We have seen a greater number of properties coming to the market for sale providing buyers with more choice, which in turn stimulates greater activity. There certainly appears to be plenty of optimistic sellers judging by how long some properties remain for sale. If sellers set their price correctly at the outset, properties should sell within the first 30 days.”

Bradleys Estate Agents are a multi-award winning estate agency in Somerset, Devon and Cornwall providing sales, lettings and mortgage services. To find out the accurate value of your home, arrange your appointment today.

https://www.bradleys-estate-agents.co.uk/pages/request_valuation

Properties are overvalued by 8% claim!

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