House Price Index: House Prices Hit New Record High
According to Rightmove's latest House Price Index, the average asking price of a home has now hit a new record, clocking in at just over £377,000. With the number of homes on the market at this point in the year at a decade-high, and the new home-buyer demand up 5% compared to last year, the market is only expected to get busier.
Seasonal house prices are a norm, with an expected jump in the Spring when the housing market is typically busier after a quieter winter, but the increase that we've seen this year is more substantial than we would typically expect.
With those looking to buy a home up 5%, and new sellers coming to market increased by 4%, the increased activity on the market is showing the consistent demand - where a drop was expected due to the end of the Stamp Duty Tax Relief.
“The high number of homes available in the market right now means that buyers are likely to have plenty in their area to choose from, and an overpriced home will stick out for the wrong reasons. Our research also shows that getting the price right the first time is key. Homes that don’t need a price reduction are more likely to find a buyer, and to find that buyer in less than half the time.”‘‘’’
Colleen Babcock, Rightmove Property Expert.
Stamp Duty Increase Not Slowing Movers Down
The expectation was to see a drop in the market after the end of the Stamp Duty relief, but this has yet to occur. Assumptions are that, due to the drop in interest rates, buyers and sellers are still in a position to move forward without being too heavily affected by this change.
Northern Regions Seeing Stronger Home Buyer Demand
Most of the Midlands, along with the Northern regions, are seeing an increase in buyer demand higher than the national average compared to this time last year, and these same areas have seen new asking price records.
Smart investors are utilising this time to move forward with starting or growing their portfolios. If you'd like more information, reach out to our expert consultants today.
