The percentage of properties that sold for more than the asking price hit an all-time high in June for the third consecutive month as demand continues to heavily outweigh supply, new figures show.
According to the latest data from NAEA Propertymark, 40% of homes sold for more than their original listing price, which was a significant increase from 33% in May, which had also been a record high.
The supply-demand imbalance continued to place upward pressure on property prices last month, while the deadline for the phasing out of the first stage of the stamp duty holiday on 30 June also had a major part to play.
The average number of sales agreed per estate agent branch dropped marginally to 11 in June, from 12 in May.
This figure is the highest for the month of June since 2017, when the number of sales per branch also stood at an average of 11 per month.
Acquisitions by first-time buyers accounted for just over a quarter – 27% – of all sales in June, a figure which has been unchanged each month since March.
The number of available properties per branch stood at 23 in June, which is the lowest number on record, down from 25 in May.
Based on the figures provided by Propertymark, there are an average of 19 buyers for every available property on the market.
The average number of house hunters registered per estate agent branch last month stood at 426 – a six-year high for the month of June. This is down from 506 in May, but in line with April’s figure of 427.
Mark Hayward, chief policy adviser at Propertymark, said: “It is astonishing to see demand for housing breaking records yet again this month, with more and more homes selling for over the asking price this year as consumers hurried to beat the first tapered stamp duty deadline.
“With 19 buyers per available property, we are very firmly still in a strong sellers’ market; properties are being snapped up swiftly and at record high prices.
“We do anticipate a rebalancing of the market over the coming months however, which is much needed.
“As the stamp duty holiday continues to be phased out and people return to normality now that most Covid restrictions have been lifted, they will be spending money saved during the pandemic on white goods for their new homes.”
It’s the same in other parts of the World. Low stock and rising prices isn’t exclusive to the U.K.
The US is seeing double digit growth as are lots of countries in Europe. Some of this activity is being driven by tax breaks, such as in the U.K. but most is being driven by two other factors: low price mortgages which in my opinion are here to stay for a long time, and the “new” factor which is buyers and sellers changing their lifestyles and new priorities such as outside space and a better living space.
This lifestyle change might become a permanent change with the constant threat of future pandemics, and we shouldn’t forget this new factor when trying to predict what the market will do next. If mortgages remain low, the market will remain stable.
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