Record high asking prices & increased buyer activity
The latest figures from Rightmove have reported a record high housing market asking prices, marking a 0.8% (+£2,807) increase from last month, due to stronger sales market activity and price sensitivity across a range of regional areas.
Record high asking prices
The average housing market asking price for a property is now estimated at £375,151, as the Spring selling season is beginning to gain momentum creating upward price pressures and setting a new record high. Large homes in the top-of-the-ladder sector remain the leaders in price growth, up by an average of 1.3% since last year.
However, as stated by Tim Bannister, Rightmove’s Director of Property Science, “It’s important to remember that prices overall are still only 0.6% ahead of this time last year. The market remains price-sensitive, and with prices reaching new records in the majority of regions and mortgage rates remaining elevated, affordability for many home-buyers is still stretched.”
Increase in sales market activity
Despite mortgage rates remaining higher than expected, pent-up demand is a key driver behind increasing buyer and seller activity. This increase is a direct result of the lack of available homes during the pandemic years and now with mortgage rates remaining stable, yet high, many potential buyers who had previously put their moving plans on hold appear to be returning.
The start of 2024 has already witnessed a 17% increase in the number of sales being agreed by buyers and sellers. From this, it is estimated that the number of completed sales transactions this year will reach around 1.1 million.
However, the time it takes to complete a sale remains a challenge for both agents and movers, with the average time between agreeing a sale and legal completion taking around 5 months or 154 days. Thus, buyers aiming to move into a new home by Christmas are advised to consider buying a property now.
Our Sales Property Professionals view
“The recent housing market price increase is a welcome boom for sellers, allowing them to reap the rewards of their hard work and investments. As prices rise, a drop in interest rates could further fuel this momentum, creating a thriving real estate ecosystem. This growth is a testament to the market’s resilience and creates a bright future for homeowners and investors alike, as the supply of new homes to the market is poised to meet the increased demand.
Although, from a buyers perspective this does present a few barriers, with an increase in house prices and no increase in average salary. This means that first time buyers and those moving up the property ladder will require a more robust deposit and stronger credit ratings to satisfy lender requirements.”
Tyler Lewis, James Douglas’ Senior Sales Valuer
If you are interested in buying or selling a property contact a member of our James Douglas team here.
