Looking at the House Price Index this month, the average cost of new homes on the market increased by just £14 to £362,452. This is the smallest January-to-February gain in history, but the fact that prices have remained stable rather than declining as some had predicted may be a sign of things to come. However, new sellers have defied convention and kept prices static for the first time ever at this time of year rather than increasing them, reflecting the slower market conditions. While it is still early, the combination of sellers being more realistic on price and an improving picture on the number of sales being agreed upon suggests a softer landing for the market than many expected. Market transitions from a fast to a slower-paced have historically had many different routes.
In Wales, the average house sale is £251,558 with a monthly change of 0.0% with an average of 68 days to sell. There has also been an increase in properties coming available to the market for rent to 5.6% in Wales. Although there is still a shortage of property on sale compared to 2019.
“The main concern this month was whether new sellers will raise their asking prices as has been customary as the spring selling season draws near. The flat average asking price for this month shows that many sellers are departing from custom and exercising unusual initial pricing discipline. We are transitioning into a slower paced market where purchasers will take longer to discover the appropriate house at the right price due to the increased cost of repaying a mortgage. Market conditions also require greater realism on price. Notwithstanding the instability around the end of 2022, there are other signs suggesting this will be an easier transition rather than a severe one.” – Tim Bannister Rightmove’s Director of Property Science
In order to find the perfect buyer more quickly, homeowners who are putting their homes on the market in the next spring season should use their agent’s experience and set the price correctly the first time. Nuttall Parker’s service is based on local expertise and experience, aiming to achieve the best possible result for our clients through the selling process.
In the last two weeks compared to the same period in 2019, the number of prospective buyers contacting agents has increased by 11%.This demand is starting to materialise into sales. Considering the sharp spike in mortgage rates less than six months ago, this is a very remarkable turnaround. This indicates that even though the first-time buyer market has been hardest hit in terms of enquiries from prospective buyers, those who are in the market and able to move are motivated to agree to a purchase, probably in part due to high and rising rents and a persistent desire to own their own home.Looking to sell and use an agent with low fall-through rates? Get in touch