Housing prices hit record high in May
This time of year is the busiest season for the housing market. Lots of people kick start their moves when the days get longer and the weather starts to warm up. But what’s happening to house prices? Here’s what Rightmove have to say:
“New sellers know they may have more potential buyers viewing their home at this time of the year so we often see asking prices edge up by around 1%. But we’ve seen prices rise by almost double that in May. The average asking price for a home in Great Britain has increased by 1.8% in May, which has pushed prices to a record high of £372,894.
This larger than usual monthly increase follows lots of speculation about what might happen in the housing market this year. Towards the end of 2022 and at the start of this year, we saw some people pause their moving plans.
There was uncertainty around what could happen to mortgage rates as a result of what’s happening in the wider economy, including changes to the Bank of England’s Base Rate, and how this might affect house prices.
But this month we’ve see demand from potential homebuyers continue to exceed the levels during the same period before the pandemic, with 3% more people enquiring to view properties for sale.
Our property expert, Tim Bannister, says: “This month’s jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season. One reason for this increased confidence may be that the gloomy start-of-the-year predictions for the housing market are looking increasingly unlikely.”
“What’s much more likely is that the market will continue to transition to a more normal activity level this year following the exceptional home-moving activity of the pandemic years,” he adds.
What does this mean if you’re thinking of selling your home?
We’re now in a much steadier housing market than we have been in recent years. If you’re looking to put your home on the market soon, the guidance from estate agents is to make sure it’s priced right first time, to avoid the need for a reduction later. Homes that are priced in line with the current market trends are the ones that are getting interest from buyers.
“The market is still very price-sensitive, and it is important that new sellers do not damage their prospects of a sale by overpricing initially and reducing later, with agents reporting that it’s the realistically-priced new instructions that are selling best,” Tim adds.
Modified article taken in part from an article from: Rightmove
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Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.