Home Property Rightmove: House prices surge to a record high of £372,894

Rightmove: House prices surge to a record high of £372,894

by LLP Finance Reporter
22nd May 23 4:56 pm

According to Rightmove seller confidence has returned and there is a 1.8% rise in asking prices this month which for this time of year is unusual.

Rightmove said that the average prices of properties coming on the market has risen by £6,647 to a record high of £372,894.

Homeowners are trying to navigate from the mini-Budget and buyer demand is now 3% higher than it was in 2019 with sales agreed at 3% behind 2019 levels.

Rightmove has said that the “market is still” price sensitive, but there is increased seller pricing confidence in the first time buyer and second stepper homes.

Tim Bannister, Rightmove’s Director of Property Science, said, “This month’s strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season. One reason for this increased confidence may be that the gloomy start-of-the-year predictions for the market are looking increasingly unlikely.

“What is much more likely is that the market will continue to transition to a more normal activity level this year following the exceptional activity of the pandemic years. Steadying mortgage rates and a generally more positive outlook for the economy are also contributing to more seller confidence, though there are likely to be more twists and turns to come.

“The market is still very price-sensitive and it is important that new sellers do not damage their prospects of a sale by overpricing initially and reducing later, with agents reporting that it’s the realistically-priced new instructions that are selling best.”

The average discount from the final asking price to the agreed sale price has steadied at an average of 3.1%, in line with pre-pandemic market levels. More predictable price patterns reflect home-mover confidence in the more normal market this year, following the uncertainty at the beginning of the year.

Bannister added, “This month’s record price is a strong indication of sellers’ confidence, and we can see from activity levels and the still relatively limited choice of property for sale that this confidence is justified in some segments of the market.

“More discretionary sellers at the top-end may be prepared to price high and wait for the right buyer, and whilst it is positive that they appear to feel no financial pressure to sell, the data suggests that some sellers in this sector will need to price more competitively if they want to find a buyer in the current market.

“A more stable mortgage market is good news, and after a period of rapid rate rises followed by some significant falls this year, this period of relative stability will help home-movers to plan ahead.”

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