A surge in the number of large homes coming to the market has pushed asking prices to near record levels, it hs been revealed.
The average asking price of property coming to the market has risen by 1.1% (+£4,207) this month to £372,324 while the annual rate of price growth is now +1.7% and the highest level for 12 months, data from the latest Rightmove House Price Index reveals today.
Homes in the top-of-the-ladder sector have seen the strongest start to the year for price growth since 2014 although prices and activity are rising more slowly in the more mortgage dependent first-time buyer and second-stepper sectors.
The number of new sellers coming to the market is up by 12% compared to this time a year ago, while the number of sales being agreed is up by 13%.
But for the largest homes the number of new sellers is up by 18% compared with last year and the number of sales being agreed up by 20%.
Despite the rise in prices and general sense of greater optimism agents say high mortgage rates are continuing to stretch affordability for the typical buyer.
STICKIER MORTGAGE RATES
Tim Bannister, Rightmove’s Director of Property Science, says: “While some buyers, across all sectors, will feel that their affordability has improved compared to last year due to wage growth and stable house prices, others will be more impacted by cost-of-living challenges and stickier than expected high mortgage rates.”
And he adds: “The Euro 2024 football tournament and the Olympics this summer, likely followed by a General Election during the second half of the year, will add more buyer distractions than usual.
“There appears to be a tempting window of opportunity for those who are considering a move to act now before these distractions arrive.”
AGENT VIEWS
Kevin Shaw, National Sales Managing Director at Leaders Romans Group, says: “We’re seeing an increase in ‘for sale’ and ‘sold’ signs in most areas and our own figures point to a successful first quarter.
“Inflation falling to 3.2% in March suggests a Bank of England interest rate cut would be welcome rather than later.
“The months leading up to the general election, likely to be in the Autumn, may see a short-term pause in activity in the market. And the outcome of that election – and its impact on house prices and activity – is far from certain.”
Jim Parker, Managing Director at Fife Properties, adds: “2024 is off to a good start with more properties coming on and more sales happening. Going into the end of Spring, this will hopefully continue as inflation drops and the possibility of a Base Rate reduction is on the horizon.
“Price sensitivity is still an issue, and sellers need to be realistic in their pricing strategy and manage their expectations. The health of the property market is primarily gauged on the number of properties listed and sold, and it’s good to see these metrics improving compared with last year.”
Nathan Emerson, Chief Executive of Propertymark, says: “With many buyers and sellers keen to start buying their next dream home during a brighter period of the year, they can do so knowing that their homes are increasing in value yet again, and this is despite the fact that interest rates remain the same in order to stabilise the economy following surging inflation.
“If you want to buy your next house, now is the best time to do so.”
WEBINAR
Rightmove is hosting a webinar tomorrow for owners and managers of lettings agencies, focused on growing their business to the maximum potential.
Rightmove’s Christian Balshen, who joined the portal in 2019 as part of the acquisition of Van Mildert Landlord & Tenant Protection, will be on the webinar with acquisitions and lettings consultants, Lucy Noonan and Peter Fuller.
The webinar will take place from 10:00am – 11:00am, on Tuesday 23rd April.
Noonan, founder of Atomic Consultancy, has more than 25 years’ experience in lettings and estate agency, and was responsible for M&A activity for some of the biggest names in the industry prior to forming her consultancy.
Fuller, an Acquisitions & Lettings Consultant, has over 40 years’ experience in the property industry, and before going solo as a consultant, held board level positions with The Romans Group.
Sign up HERE.
