According to Rightmove, the average asking price for homes coming to market is now £373,894 – nearly £7,000 more than the previous month.
The UK housing market continues to make waves as the average price tag on a home hit an all-time high in May, according to property website Rightmove. With a significant monthly jump of £6,647 or 1.8 per cent, the average asking price for a home coming to market now stands at £372,894.
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This substantial increase marks the largest month-on-month surge so far this year, hinting at growing confidence among sellers. However, while the market shows signs of recovery, it remains hyper-local and price-sensitive, with buyer affordability still stretched, as highlighted by Rightmove.
Tim Bannister, Director of Property Science at Rightmove, said: “This month’s strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season. One reason for this increased confidence may be that the gloomy start of the year predictions for the market are looking increasingly unlikely.
According to him, the market will continue its transition towards a more normal level of activity this year, following the exceptional activity observed during the pandemic years. “Steadying mortgage rates and a generally more positive outlook for the economy are also contributing to more seller confidence, though there are likely to be more twists and turns to come, ” Tim said.
“The market is still very price sensitive and it is important that new sellers do not damage their prospects of a sale by overpricing initially and reducing later, with agents reporting that it’s the realistically priced new instructions that are selling best.”
While the market displays encouraging signs, Rightmove notes that the average discount from the final asking price to the agreed sale price has stabilised at around 3.1 per cent, aligning with pre-pandemic levels. Moreover, the number of potential buyers inquiring about homes for sale has increased by 3 per cent compared to 2019, particularly among those taking their first or second steps on the property ladder.
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However, there are signs of some over-optimism in the “top of the ladder” property sector, Rightmove said. While larger properties are still selling faster typically than in 2019, it is now taking an average of 67 days to agree a sale, nearly double the 35-day average at this time last year, the website added.
Tim added: “This month’s record price is a strong indication of sellers’ confidence, and we can see from activity levels and the still relatively limited choice of property for sale that this confidence is justified in some segments of the market.
“More discretionary sellers at the top end may be prepared to price high and wait for the right buyer, and whilst it is positive that they appear to feel no financial pressure to sell, the data suggests that some sellers in this sector will need to price more competitively if they want to find a buyer in the current market.”
By Vicky Shaw
Source: In Your Area