Asking Prices Are Becoming More Realistic

about 1 year ago
Asking Prices Are Becoming More Realistic

According to Rightmove, sellers in the UK are beginning to price their properties more realistically, despite asking prices for first-time buyer homes reaching a new high.

The portal’s latest House Price Index for April shows that new seller asking prices have only increased by 0.2% this month, which is much lower than the typical yearly increase of 1.2%. This unseasonable restraint in pricing indicates that many new sellers are taking note of the economic headwinds and the transitioning of the housing market to a slower pace and more normal activity levels.

However, asking prices for typical first-time buyer homes have risen by 2% annually to a record high of £224,963. Rightmove also warned that sales agreed are still 18% behind last year’s “exceptional market”, but the first-time-buyer sector is leading the recovery.

Average stock per agent has also increased from 43 to 45 while the time to secure a buyer dropped during March from 57 to 55 days. Tim Bannister, Rightmove’s director of property science, said that agents are reporting that many sellers have transitioned out of the multi-bid market mindset of recent years and understand the new need to tempt spring buyers with a competitive price.

Savills’ research shows that the commitment to move among UK buyers has returned to levels not seen since February 2022. The agent’s latest survey of prospective prime property buyers and sellers shows that 60% of purchasers now say that recent interest rate rises and increased living costs have no effect on their budget and source of funding, up from 54% in August 2022.

Savills warned that despite increased confidence, a lack of stock remains an issue for prime buyers, with three-quarters of buyers stating that a lack of stock is affecting their ability to purchase a home.

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