New statistics published by Rightmove reveal that the average price of property coming to the market has risen by 2.3% (+£7,783) in February 2022.
Whilst February typically sees a rise in asking prices from January, this is the biggest monthly jump in pounds recorded by Rightmove in more than twenty years.
The result of this is a record high national UK average house price of £348,804.
In the South-East specifically, house prices have jumped 1.8% in the last month and are up 10.7% when compared to this time last year.
This new record means that average asking prices have now risen by nearly £40,000 in the two years since the pandemic started, compared to just over £9,000 in the previous two years.
It is apparent that the pandemic continues to influence home moves, with February’s price growth primarily driven by the ‘second stepper’ sector – those looking for more space and ready to move on from their first homes.
Tim Bannister, Director of Property Data for Rightmove, states: “The data suggests that people are by no means done with their pandemic-driven moves.
Such a significant societal event means that even two years on from the start of the pandemic, people are continuing to re-consider their priorities and where they want to live.
High demand and a shortage of available stock are supporting a rise in prices and a new record average asking price this month."
Evidently, there is still a mismatch between buyer demand and the supply of available homes, but the early signs of a better-balanced market reported at the end of 2021 are now starting to come to fruition.
The number of new sellers listing their homes for sale is up by 11% compared to this time last year, providing some much-needed fresh property choice, with January experiencing a rise of 11% in the number of people requesting a home valuation from an estate agent.
The sellers who are taking action now, many of whom are also buyers, are undoubtedly putting themselves in the best possible position to secure their next property.
We are seeing increased number of disappointed buyers missing out of their dream home because they do not already have their current home on the market or sold (subject to contract),and are being ‘pipped to the post’ by those in a better position to proceed with the purchase.
Bannister says: “It seems that the fast-moving market has really hit home for sellers this month, with a number of those who are also buyers putting themselves in the best position to secure their dream home by becoming a ‘power buyer’ and getting their own home on the market first. This in turn is driving a rise in new listings compared to last year, giving the existing pool of buyers some fresh choice. A fear of missing out on one’s dream home is really driving market behaviour at the moment, as movers look to do all that they can to avoid the disappointment of being too slow to secure their ideal property.”
The timing of this increased activity is ideal for both current and would-be sellers, as data from Rightmove shows that March is historically the strongest time to sell, usually with the highest number of buyer enquiries per property for sale.
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. We’re here to help.
