House Asking Prices Up Record £19,082 in 3 Months

Rightmove has reported that the Spring ‘stampede’ for house moves has started with a ‘bang’ with the average property asking price increasing by £19,082 in the last 3 months alone.  That’s an average, given the shorter February month of £5,537 per month.

It is a seller’s market at present, with demand still at record levels and yet the number of properties available being low.

Why Do Sellers Keep Asking for More?

It is a simple fact of supply and demand.  Demand always drives prices up. Sellers can ask for those prices.

In addition, Rightmove is seeing a record turnaround in properties going on the market to offers being made, accepted and the ‘Sold subject to Contract’ board going up.  Currently, the average property in the UK is on the market for just 33 days whereas in 2019, pre-pandemic and, it was still a buoyant market then with an average 67 days to sell.

Rightmove also suggests that 53% of properties are now being at or above their asking price.  Is ‘gazumping’ coming back?

Comment

The love affair with UK property continues.  From our own experience, the neighbours of the directors of this firm, put their property on the market and the full offer from a cash buyer was accepted within 24 hours of their property going on the market.  The offer accepted is more than double what was paid just 8 years ago.

Rightmove does suggest that price rises are slowing down now, in fact monthly price rises last month were 1.6%, compared to 1.7% the month before and 2.3% the month before that.    Recession and spendable income falls are coming as inflation bites. 

Long term, we expect property prices to power up over the next 10 years but there will be periods, like there was in the late 80s and early 90s when property prices went into reverse, and many will remember ‘negative equity’ and rising home repossessions.