The average price of a house hits a record high in May – Rightmove
According to a property website, the average price of a home hit a record high in May after rising £6,647 or 1.8% month-on-month.
Across the UK, the average asking price for a house coming onto the market is £372,894, Rightmove said.
The increase in the average asking price by 1.8% compared to the previous month is the strongest of the year so far, it said.
However, the current “hyperlocal” market is still price sensitive and affordability for buyers remains limited, Rightmove said.
Tim Bannister, Director of Property Science at Rightmove, said: “The sharp rise in new seller asking prices this month appears to be a delayed reaction and a sign of increasing seller confidence, as we typically see such a large monthly rise in early spring would see.” Season.
“One reason for this increased confidence could be that the gloomy forecasts for the market at the beginning of the year are looking increasingly unlikely.
“It is much more likely that the market will continue to transition to a more normal level of activity this year after the extraordinary activity of the pandemic years.
“Stable mortgage rates and a generally more positive outlook for the economy are also helping to boost seller confidence, although there are likely to be more twists and turns.
“The market is still very price sensitive and it’s important that new sellers don’t hurt their sales prospects by over-pricing and later lowering prices. Brokers report that it’s the new orders at realistic prices that sell best.”
The average discount from the final offer price to the agreed sales price has stabilized at an average of 3.1%, in line with pre-pandemic market levels, Rightmove said.
The number of buyers inquiring with real estate agents about homes for sale is now 3% higher than at this point in 2019, led by buyers taking their first or second step up the real estate ladder, it said.
However, there are signs of some over-optimism in the real estate sector, which is “at the top of the ladder,” Rightmove said.
While larger properties are still generally selling faster than in 2019, it now takes an average of 67 days to agree a sale, nearly double the 35-day average at this time last year, the site added added.
Mr Bannister added: “This month’s record price is a strong sign of seller confidence and we can see from the level of activity and still relatively limited selection of properties for sale that this confidence is justified in some segments of the market.”
“More discretionary sellers at the top end may be willing to price high and wait for the right buyer and while it’s positive that they don’t appear to feel any financial pressure to sell, the data suggests that some sellers in this sector need to set prices more competitively if they want to find a buyer in the current market.”
https://www.standard.co.uk/business/money/average-price-tag-on-a-home-hits-record-high-in-may-rightmove-b1082662.html The average price of a house hits a record high in May – Rightmove