Property Prices Update: May 2022
Property prices in Wales, and the UK as a whole, have seen another record-breaking consecutive month of growth. However, whilst lack of supply is the main factor driving these price increases, there are signs that the market is calming down in the run-up to the summer holidays.
Property Prices UK
The average price of a property in the UK has risen by over £7,500 in the past month and now stands at £367,501. This is higher than the £6,218 increase in the same period before the pandemic and shows that there is an even stronger desire from potential buyers. While this fourth consecutive month of price rises also coincides with the fourth month of interest rate increases, the number of people looking to buy is at record highs. However, the total number of available properties is down 16% compared to last year and down 55% compared to pre-pandemic levels according to Rightmove. It has been predicted by Zoopla that because of this, in the coming months, buyers are likely to become more sensitive to prices and be more willing to push for decreases in asking prices.
Property Prices Wales
Property prices in Wales have again outperformed the rest of the UK housing market with the nation maintaining another record-breaking year-on-year increase of 14.5%. This brings the average property price to £257,732. In all areas of Wales it has been found that demand is highest for 3 bedroom family homes as families look to upsize before the start of the new school year. The time a property spends on the market has increased slightly by 1 day and now stands at 33 days. The slowing here is an indication of some buyers reducing their budget as the cost of living crisis begins to bite, although this mostly seems to be affecting first-time buyers.
In conclusion property prices in the UK have seen another consecutive month of strong growth. With the number of properties coming to market slowing in the run-up to summer prices can be expected to rise until the end of the year. However, there are early signs that the cost of living crisis is starting to affect buyers with many dropping their budgets or making offers below the asking price.
If you think it is time to sell over summer and are looking a valuation get in touch with us here to find out how we can help.
