House prices continue to grow with the average price of home coming to market increasing by 1.7%, or £5,760 this month, to £354,564 – breaking through the £350,000 barrier for the first time.
The average monthly rise is the largest seen at this time of year since March 2004, pushing the annual rate of increase to 10.4%, with all regions and countries except London and Scotland now up over 10% annually, according to the data from Rightmove.
The most expensive sector of four-bedrooms plus sees average monthly growth of 3.8%, or £23,619, encouraging new sellers to come to market, with 12% more new listings in this sector than at this time last year.
For those looking to move this is the best ever spring sellers’ market, not just because of record price levels, the property website said.
The figures provided show that we enter the spring selling season with the widest supply-demand imbalance for this time of year ever measured by Rightmove, with more than twice as many buyers as sellers
Additionally, the chance of finding a buyer in first week is highest ever, and twice as likely compared to same period in 2019.
It is clearly too early to know how the market will be affected by the longer-term economic impact of the abhorrent and devastating war in Ukraine. Rightmove initially saw slightly lower buyer demand but this has now stabilised.
The property portal forecast a less frothy market in the second half of the year, as economic headwinds lead to a more evenly balanced market, though demand will still outstrip supply
Tim Bannister, Rightmove’s director of property data, said: “There’s a hat-trick of reasons for home-owners to follow the normal trend and make it their goal to sell this spring. Firstly, the potential to achieve a record price for their property.
“Secondly, the imbalance between high buyer demand compared to low available property supply is the greatest that we have ever seen for the start of a spring market, meaning that the chance of being able to pick and choose between several suitable buyers is strong.
“Thirdly, the proportion of properties finding a buyer within the first week is also at an all-time high for this time of year, so sellers with an appropriately priced and well-presented property can expect a shorter marketing period than the norm. Those who weren’t ready to take advantage of last year’s rush now have another chance to get on the market while these conditions last.
“Many of those who are selling in this record-breaking market obviously also face the prospect of buying again in the same market, and being in fierce competition against other buyers. Having a buyer for your own property, subject to contract, puts those who are buying again in a powerful position compared to buyers who have yet to sell, and agents report that these ‘power buyers’ are more likely to get the property that they want and negotiate the best deal on price.”
All sectors of the market are experiencing very brisk conditions and we expect the strong market to continue until economic forces combine to move the supply and demand balance closer towards equilibrium, according to Bannister.
He added: “ There are headwinds that seem likely to remove the current market froth in the second half of the year. We’ve just seen interest rates rise again, and there are further incremental increases forecast for the year which will raise mortgage rates for some. Inflation and cost of living increases are also likely to affect buyer affordability and market sentiment.
“It’s too early to know how the UK housing market will be affected by the longer term economic impact of the abhorrent and devastating war in Ukraine, and so all we can use as a measure for now is the level of UK buyer and seller activity.
“When the war started we initially saw slightly lower buyer demand but this has now stabilised. Our forecast is that overall transaction numbers for 2022 will revert back to pre-pandemic levels, as the market returns to a more even balance. Currently, the number of sales being agreed by estate agents is 11% higher compared to the same period in the more normal market in 2019.”
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