The lastes HPI results from Rightmove reveal postive outlook ahead for the Property Market.
- With average new seller asking prices remain flat this month rather than falling as some expected this could be seen as a positive indicator for the year ahead in the Property Market
- Increasing numbers of buyers are also returning, with the market starting 2023 much better than many expected:
- The latest snapshot of buyer demand shows the number of people contacting agents is up by 11% in the last two weeks compared with the same period in 2019’s more normal market
- Average rates for a 15% deposit five-year fixed mortgage are now 4.82%, down from October’s 5.90%
- While there is still an overall shortage of property for sale, down by 24% compared to 2019, there is more choice for buyers than a year ago, giving prospective buyers confidence for their onward move
- The latest sales agreed figures show that surprisingly it is the first-time buyer sector that is recovering better than the discretionary upper-end sector
“The big question this month was whether we would see new sellers increasing their asking prices as has been the yearly norm as we approach the spring selling season. This month’s flat average asking price indicates that many sellers are breaking with tradition and showing unseasonal initial pricing restraint. In addition to market conditions demanding greater realism on price, we are transitioning into a slower paced market, where buyers will take longer to find the right property at the right price due to the higher cost of servicing a mortgage. There are other indicators that this will be a softer rather than a hard transition despite the turbulence at the end of 2022. Homeowners who are coming to market in the upcoming spring season should use their agent’s expertise and get the price right the first time , which can really help to find the right buyer more quickly.”
Tim Bannister Rightmove’s Director of Property Science
Though it is still very early in the year, this month’s key metrics suggest that many buyers are seeing reasons to get on with their moves, and have the confidence to return to a market which, so far, is stronger than many expected. The number of potential buyers contacting agents is up by 11% in the last two weeks compared with the same period in 2019.
Source Rightmove HPI
Rob Stross Property Investor Media