The price of property coming to market has hit a new record high for the second consecutive month, with the national average now being £354,564, breaking through the £350,000 barrier for the first time.
Rightmove has in fact recorded the largest increase, 1.7%, in average asking price since March 2004.
House prices in the South-East have increased 3.3% in the last month and are a significant 12.6% higher than this time last year, with the average house price now sitting at £473,922 in the region.
The largest monthly price rise has been recorded in the ‘top of the ladder’ sector, predominantly comprising four-bedroom or more properties, with this sector seeing a 3.8% jump (+£23,619) due to high demand and the greatest scarcity of supply. However, encouragingly for prospective buyers in this sector, 12% more properties have come to market in the last month when compared to the same period a year ago.
For those looking to move, this is the best-ever Spring sellers’ market on record, and not just because of the record price levels. We are entering the Spring selling season with the biggest mismatch between buyer demand and the number of properties available for sale that Rightmove has ever measured at this time of year, with more than twice as many buyers as sellers. In fact, the chance of finding a buyer in the first week of being on the market is higher than ever before, and twice as likely compared to the same period in 2019.
The data shows that 22% of property deals are being agreed on the Rightmove website within the first week of going on sale, and 47% within the first two weeks.
Tim Bannister, Rightmove’s Director of Property Data comments: “There’s a hat-trick of reasons for home-owners to follow the normal trend and make it their goal to sell this spring. Firstly, the potential to achieve a record price for their property. Secondly, the imbalance between high buyer demand compared to low available property supply is the greatest that we have ever seen for the start of a spring market, meaning that the chance of being able to pick and choose between several suitable buyers is strong. Thirdly, the proportion of properties finding a buyer within the first week is also at an all-time high for this time of year, so sellers with an appropriately priced and well-presented property can expect a shorter marketing period than the norm. Having a buyer for your own property, subject to contract, puts those who are buying again in a powerful position compared to buyers who have yet to sell, and agents report that these ‘power buyers’ are more likely to get the property that they want and negotiate the best deal on price.”
Rightmove also states that it is too early to know how the market will be affected by the longer-term economic impact of the devastating war in Ukraine. We forecast a less frothy market in the second half of the year, as economic headwinds lead to a more evenly balanced market, through demand will continue to outstrip supply.
If you are considering a move this year, or have any queries regarding the current housing market, please do contact one of our property experts today.
