This is the latest property news: sellers are capitalising on lack stock, resulting in increased asking prices (by an average 2.3%)!
It is the biggest monthly jump in asking prices recorded by property portal Rightmove in more than 20 years!!!
January was the busiest-ever start to a new year for the housing market, and this month has been even busier, with a huge number of people determined to move as we head into spring.
Estate Agents Strutt & Parker have recently maintained its UK house price forecast for 2022, despite new pressures presented by recent interest rate rises and inflation. The property consultancy’s latest forecast shows UK property prices remain on course to grow by up to 7% and up to 10% for Prime Central London (PCL) as demand from buyers remains strong in a housing market with ongoing supply constraints.
Across the UK, current sales stock volume is down 30% year on year and the average time spent on the market (excluding London) has decreased by 11% on 2021 and 24% on 2020, highlighting the competiveness of the market.
The madness continues…..
Will Prices Keep Rising?
One of the positive news is we are starting to see the first signs of the pressure easing. There are more new property listings coming to the market compared to a year ago, which will be seen as a sign of relief for many, giving buyers some fresh choice and a bit of breathing space.
This should help to ease the pace of price growth as we head out of a busy spring season and into a more traditional summer housing market.
What Could Happen Next?
Two things you can be confident will follow from the current drought of homes for sale:
1. Asking prices will rise (and sale prices will too).
2. More stock will come by Easter as sellers see these higher prices.
This is what markets tend to do.
So let’s wait and see…