It looks as if landlords have enjoyed further capital appreciation with the latest housing market index showing still-rising asking prices for homes on sale.
Rightmove reports today that the price of property coming to market hits a new record high for the third consecutive month, up by 1.6 per cent in recent weeks.
Despite growing concerns about interest rate rises and the cost of living crisis, Rightmove reports that all regions and all market sectors have hit record price highs, for only the second time since 2007.
The average increase in asking prices over the past three months now totals £19,000 which is the largest seen in any three-month period since the portal’s records began over 20 years ago.
Some 53 per cent of properties are selling at or over the full asking price, again the highest level ever seen; meanwhile the number of transactions is now running 21 per cent higher than the more normal pre-pandemic 2019 market.
Tim Bannister, Rightmove’s director of property data, comments: “With three new monthly price records in a row, 2022 has started with price-rise momentum even greater than during the stamp duty holiday-fuelled market of last year.
“While growing affordability constraints mean that this momentum is not sustainable for the longer term, the high demand from a large number of buyers chasing too few properties for sale has led to a spring price frenzy, a hat-trick of record price months, and the largest price increase for a three-month period Rightmove has ever recorded.
“The strong momentum has carried over from last year and, combined with the impetus of the spring moving season, has delivered the quickest selling market we’ve ever seen. The high speed of the market and competition among buyers when making an onward move will be deterring some owners from putting their homes up for sale.
“However, if you can secure both a quick sale and a quick purchase then it’s a lot less stressful than the uncertainties of a slower market when finding a buyer for your own home can drag on for months or not happen at all. Over 125,000 new sellers have taken advantage of the great sellers’ market this month, but more are needed in all areas and in all property sectors to meet high buyer demand.”
Bannister continues: “The economic headwinds of strongly rising inflation and modestly rising interest rates are being kept at bay by the even stronger tailwind of property market momentum that has carried over from last year.
”2021 saw four consecutive monthly price records from April through to July and I would not bet against that being bettered this year as we are already at three consecutive records in April.
“There are some early signs of an easing off from the frenetic pace of price rises, and buyer enquiries to agents are down by 16 per cent on last year’s stamp-duty frenzy. However incredibly, buyer enquiries are still 65 per cent above the more normal market of 2019 and the number of sales agreed is up 21 per cent.
“While there is growing economic uncertainty, our current market statistics show there is greater certainty that your property will sell more quickly than ever before, and likely at a record price. It can’t and won’t continue like this, but with the demand and supply imbalance being so out of kilter, it looks like any substantial slowdown will be gradual in coming and be a soft rather than hard landing.
“It seems likely that the supply/demand mismatch will remain for at least the rest of this year. Even with some economic uncertainty, where you live and your home is such a fundamental decision for people that it will remain a priority for many.”
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