New Year boost for home sellers as prices bounce back
24 Jan 2020
Property index records surge with largest monthly rise every recorded
It’s good news for vendors about to launch their home for sale online as the latest house price index from Rightmove has revealed a surge in the price of property coming to market.
An average rise of 2.3%, or £6,785, on December’s figures is the biggest monthly rise ever recorded by Rightmove in the new year.
Rightmove has fielded more than 1.3 million buyer inquiries since the General Election, up 15% compared to same period a year ago, indicating an active spring market ahead.
But the desire to get onto the housing ladder is not such good news for first-time buyers, who are facing all-time highs in their property bracket.
Nearly 65,000 properties were marketed between December 8 and January 11, most therefore marketed online after the December 12 election. With new sellers displaying a wave of optimism, buyers are also keen, with a hike in demand since the election. Between mid December and mid January inquiries to estate agents rose 15% compared to the same period a year ago. This has led to a 7.4% increase in the number of sales agreed over the same period.
Miles Shipside, Rightmove director and housing market analyst, said the figures show many buyers and sellers feel the election result has provided a window of stability.
“The unsettled political outlook over the last few years since the EU referendum caused some potential home-movers to hesitate. There now seems to be a release of pent-up demand, which suggests we are in store for an active spring market.”
The month’s 2.3% rise in new seller asking prices is the largest Rightmove has ever recorded at this time of year since the House Price Index began in 2002.
Among the positive features of last year’s market was the high percentage of first-time buyers. But lack of supply and desire to get onto the housing ladder has led to properties in this sector reaching record highs. Properties with two bedrooms or fewer newly launched online now have a national average asking price of £193,103.
However, the annual rate of increase remains fairly modest at 1.6%, less than the growth in average earnings, so affordability has improved overall for first-time buyers.
OnlineEstateAgents.com is the place to start your online property sale or search and our locally based valuation agents can help you get your current home on the market at the right price, with no obligation.
Director Shezad Tayub commented: “The New Year price surge is very heartening, but the market remains price-sensitive, with many buyers still stretched. Sellers need to be realistic about pricing in order not to miss out on this broader window of opportunity.
“For those had been putting off selling until better days, now would seem a good time to seek an opinion from a local estate agent on their property’s value, plus a mortgage quote for the excellent fixed-rate deals that are currently available.”
For expert property advice contact low cost estate agents Online Estate Agents Ltd; on 0330 1244 786.
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