Sellers feeling bullish as listings return with higher prices

Sellers are returning to the market but with higher prices, Home.co.uk claims.

Analysis by the property website found there were 44,198 new listings across the UK during May compared with just 14,604 in April.

Despite concerns that prices would have to drop to attract buyers as the property market reopened in May, Home.co.uk has found UK asking prices as of this month are now up 0.7% on a monthly basis and 0.8% annually to £310,819 on average.

There have also been some confident monthly price hikes regionally, with listing values up 1.5% in the north west and increasing by 1.3% in Yorkshire.

However, the number of new listings is still down 57% annually and the total available stock has declined 14%.

Its research also found new sales listings are down by the most in Scotland, Wales and Northern Ireland, declining 83%, 78% and 63% respectively.

Doug Shephard, director of Home.co.uk, said: “Vendors are re-entering the market and, most remarkably, they are pricing higher.

“Counter to the doom and gloom that has dominated the media recently, vendors who have been brave enough to place their properties on the market are showing considerable confidence and less caution than might be expected.

“However, considering the overall lack of supply, their bullishness would seem justified.

“Supply was already low a year ago, according to longer-term trends, and the mere trickle of properties entering the market is highly unlikely to surpass demand.

“Moreover, it is clear that there is considerable pent-up demand post-lockdown, so much so that several major lenders have temporarily withdrawn 90% loan-to-value products citing overwhelming demand, especially from first-time buyers.

“The fact is that the market is currently in a state of transition and the new normal is yet to be defined.

“We anticipate that it will take two to three months for the market to find its new post pandemic equilibrium.”

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