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Property priced 55k higher than pre-pandemic – why it’s great news for sellers

The price of property coming to the market has hit a fourth consecutive record of £367,501, up by 2.1% monthly (+£7,400), according to new research by Rightmove.

Recorded as the highest increase at this time of year since May 2014, this marks a national jump of £55,551 in asking prices in the two years since the housing market shut due to the pandemic – great news for sellers looking to sell for their asking price above.

The above is compared to a rise of just £6,218 in asking prices in the two years prior to the pandemic, and therefore illustrates how frenzied market activity has led to a two-year price growth in cash terms, never before witnessed in over twenty years of the website tracking prices. 

Rate rise, with a steady easing market

Rightmove conducted its research and found that this fourth consecutive price record comes alongside a fourth successive interest rate rise. However, this rate rise, and other household economic concerns, do not appear to have dented the motivation and urgency to move that are felt by many, though there are signs that the market is beginning to ease.

Estate agents being contacted by buyers are down by 14% on the stamp-duty-fuelled market of this time last year, yet it remains up by 31% on the more comparable market of 2019. Properties available to buy is down by 55% on the levels seen in 2019, meaning that supply and demand look likely to remain out of kilter for the remainder of the year. With demand continuing to massively outstrip supply, sellers are put in a strong position when it comes to negotiations.

Sellers should act swiftly in this market since the number of sales agreed is up by 12% in the year to date compared to 2019. These numbers suggest that a lack of homes for sale rather than a lack of desire from buyers is dictating the pace of the market.

In the mid-market sector, new stock is most urgently needed when it comes to two- and three-bedroom semi-detached homes, which are seeing the most competition from buyers.

Rightmove’s director of property science, Tim Bannister, commented: “People may be wondering why the housing market is seemingly running in the opposite direction to the wider economy at the moment. What the data is showing us right now is that those who have the ability to do so are prioritising their home and moving, and the imbalance between supply and demand is supporting rising prices.”

“Though demand is softening from the heady levels we saw this time last year, the number of buyers enquiring is still significantly higher than during the last ‘normal’ market of 2019, while the number of homes for them to choose from remains more constrained.”

Bannister concluded: “We anticipate that the effects of the increased cost of living and rising interest rates will filter through to the market later in the year, and a combination of more supply of homes and people weighing up what they can afford will help to moderate the market.”

Should sellers make their move?

Overall, the above analysis is good news for sellers looking to get the most for their homes as the current market is booming - yet a word of caution should be noted that the market is slowly beginning to ease so therefore sellers should act now while the market is still hot just in case it begins to dip.

If you have a two or three-bedroom semi-detached home, in particular, it’s likely that you’ll have lots of buyers competing for your home if you put it on the market. This extra competition could enable you to set a higher initial asking price and improve your chances of a quick sale.

As a top letting/estate agent operating across Essex and East London, here at Ideal Locations we can help you to get the most out of your home’s sale. For more information on our current operations, please contact us today.

We also offer a free online valuation to give you an estimate on how much your home could be worth on the current market.