Spring Selling Season Sees House Prices Reach New Record
This month, the average asking price for a home in Great Britain has hit a new high, exceeding £375,000, marking an increase of 0.8%.
The spring months are traditionally the most active time of the year for the housing market, often resulting in rising prices during this period.
Since the start of the year,according to Rightmove, there has been a consistent monthly increase in average asking prices, which demonstrates the confidence new sellers have in finding buyers for their properties.
With the announcement of a summer general election on 4th July, we can expect prices and market activity to remain stable over the next few months. The last four years have posed several obstacles for those looking to move house: a global pandemic, limited housing supply, and rapidly changing prices. For many, 2024 is the year to finally make their move, and numerous home-movers will want to proceed with their plans to secure their desired homes.
The current price growth is primarily driven by larger 'top-of-the-ladder' homes, which have five or more bedrooms, as well as four-bedroom detached houses, continuing the trend we observed last month. More individuals are listing properties for sale in this market segment after postponing their plans in previous years. The number of home sales agreed for top-of-the-ladder properties in the first four months of this year has risen by 24% compared to the same period in 2023. Overall, sales agreed across the market have increased by 17%.
Rightmoves property expert, Tim Bannister, says: “The momentum of the spring selling season has pushed average asking prices to a new record, with the top-of-the-ladder sector still leading the charge. However, it’s important to remember that prices overall are still only 0.6% higher than this time last year.
The market remains price-sensitive, and with average asking prices hitting new records in most regions and mortgage rates still elevated, affordability for many home-buyers remains strained.”
If you're considering selling your home soon, we advise ensuring your property is priced realistically from the outset. Rightmoves analysis indicates that homes with an initial asking price reduction take over three times longer to find a buyer (112 days) compared to those priced correctly from the beginning (32 days).
Current Home Moving Timescales
At present, it takes an average of 62 days to find a buyer. However, the entire process, including agreeing on the sale, completing the transaction, and handing over the keys, takes considerably longer—currently 154 days, or approximately five months.
So, if you aim to move into your next home by Christmas, it's wise to start planning your move now.
Rightmoves Tim adds: “The protracted legal completion process is a significant hurdle for home-movers. While it may seem premature to think about Christmas in May, many people preparing to sell envision celebrating the festive season in their new home, and to make that a reality, now is the time to enter the market.”
