The spring home-selling season has arrived, and any signs of a slowdown in the UK property market have all but vanished. According to Rightmove, we are experiencing the strongest ever sellers’ market, with the average price of a property coming to market having broken the £350,000 barrier for the first time ever. This rise in house values has been prompted by an imbalance between buyer demand and the number of properties for sale. *
According to the Rightmove data, the 1.7% (+5,760) gain this month is the greatest increase seen at this time of year since March 2004. Plus, Rightmove’s annual rate of 10.4 percent is the highest it’s seen in any month since June 2014. *
The recent surge in house prices is being fueled by the greatest imbalance between buyer demand and the number of properties available for sale that the portal has ever measured at this time of year, resulting in what Rightmove claims is the strongest spring sellers’ market they have ever seen. *
What is prompting people to move this spring?
First and foremost, homeowners have the chance to sell their homes for a record price. With house prices at their highest, and available properties on the market low, competition is fierce, meaning that house prices are driving further up.
Secondly, the gap between buyer demand and low available property supply is the widest we’ve ever seen at the start of a spring market, meaning that there’s a good chance of sellers being able to choose between several buyers.
Thirdly, the number of homes finding a buyer within the first week is also at an all-time high, so sellers with a properly priced and well-presented property can expect their property to have a shorter marketing period than usual. Those who missed out on last year’s rush have another chance to get their home onto the market while conditions are still good. If you’re looking for a professional and accurate valuation of your property, click here.
Many of that selling in this strong sellers’ market should also consider the prospect of buying in the same market, where they will face stiff competition from other buyers. When compared to buyers who have yet to sell, having a buyer for your own house, subject to contract, puts people who are buying again in a favourable position, and these ‘power buyers’ are more likely to secure the property they want and negotiate their price.
There are now more than twice as many buyers as sellers in the market right now, which is the largest supply-demand imbalance that Rightmove has ever seen at this time of year. The market’s speed is further illustrated by the fact that 22% of deals are completed within the first week of being listed, according to Rightmove. *
This is more than double the figure seen in 2019. Another indication of high demand and the strong chance of finding a buyer soon is that nearly half (47%) of sales are being agreed within the first two weeks of being put on the market. *
What does this mean for the housing market?
All areas of the market are seeing very lively conditions, and the market is expected to remain strong until supply and demand levels stabilise. As the market returns to a more even balance in 2022, overall transaction levels are expected to recover to pre-pandemic levels. In comparison to the same period in the more balanced market in 2019, the number of sales agreed is currently 11% higher. *
*According to recent data from Rightmove