Westcoast Residential joins Absolute
Record prices for sellers plus more choice for buy

Asking prices reach a sixth consecutive record £369,968 and there is more choice for buyers, with the number of new sellers coming to market up by 13% compared to this time last year. In the current fast changing economic climate, those looking to buy who find a suitable home they can afford, may choose to act now rather than wait.

Key points

  • Price of property coming to market hits sixth consecutive record of £369,968, up 0.4% in the month (+£1,354)
  • Rightmove revises full-year 2022 house price forecast up from 5% growth to 7% despite cooling market, as record low stock volumes struggle to recover enough to meet buyer demand
  • Demand to move is coming off the boil but remains high despite economic and political uncertainty
  • Rate of monthly house price growth falls to the lowest rate since December 2019, with average values up just +0.1% in May
  • Average house prices are up +8.4% on the year, taking the average value to £251,550

Numbers of sellers are up by 13% compared to this time last year meaning that more properties are continuing to come to the market, however stock is still 40% down compared to the same time in 2019. This shortfall from more normal stock levels will help to underpin prices this year, as at the moment there are not enough homes coming to market to correct the balance between supply and demand. The slow rate of stock recovery has led to Rightmove revising its 2022 price forecast, with 7% annual growth now expected by the end of the year across Great Britain, up from our 5% forecast at the start of the year.

“Having more new sellers this month is a win-win for the market, as these sellers will likely achieve good prices for their homes given the sixth asking price record in a row that we’ve now seen, which may help to explain the increase in new stock coming to market over the last year. For those looking to buy, it means more choice, and a slight easing in competition against other buyers while the market is still moving very quickly. In the current fast-changing economic climate, those looking to buy who find a suitable home they can afford, may choose to act now rather than wait. While more choice is welcome news, the number of homes available remains well below the more normal levels of 2019 and is unable to satisfy the continued high demand that we’re seeing. Though a softening in demand is moving the market from a boil to a simmer, it remains 26% up on 2019. With such an imbalance remaining between supply and demand, prices look underpinned, and we would therefore only expect typical smaller seasonal month-on-month falls, rather than more significant price falls in the second half of the year. This has led to us revising our annual price growth prediction for the end of the year from 5% growth to 7%, although this would still mark a slowing from the 9.3% seen this month.”
Tim Bannister, Rightmove’s Director of Property Science

Record prices for sellers plus more choice for buyers.
The second half of the year will likely see demand returning to normal levels due to the the rising cost of living and personal finances are becoming increasingly stretched, however the prospect of further interest rate rises may drive some to act now to lock in a longer fixed-term mortgage rate. Add to this the fact that the gap between interest rates for shorter and longer term mortgages has been closing in recent years, and they are now virtually the same this makes this all the more likely.

“The challenges presented by rising interest rates and the cost of living will no doubt have an effect throughout the second half of the year, as some people reconsider what they can afford. However, there is also anticipation among would-be home-movers that personal finances may become even more stretched in the coming months, with further interest rate rises expected and the energy price cap jumping again in October. Given the political and economic uncertainty at the moment, those who want to move this year, particularly first-time buyers, may seek some financial certainty by locking in longer fixed-rate mortgage terms now before their monthly outgoings increase again.”
Tim Bannister, Rightmove’s Director of Property Science

Agent’s Views
"Here in the South West asking prices are up by 12.2% year-on-year despite the state of the economy at the moment. The Devon property market is still performing very well and many properties are still selling above asking price, albeit within the last month to six weeks we have noticed a slight slowdown. This could be due to more properties coming to the market and the current imbalance between high buyer numbers and low stock is slowly beginning to correct itself. Another reason for this could be the rising costs of living. It is too early to know if interest rate rises have had any impact within the market, however we are seeing an increased amount of purchasers fixing mortgages for longer periods. My expectation of the near future is that things will continue as they are for the coming months. There are simply too many buyers wanting to purchase and this will keep the market moving in the short to medium term future."
Peter Lindberg, Director at Absolute Sales and Lettings

The market is still moving quickly, but the time between listing a home for sale and agreeing a sale is increasing, a sign that the market is returning to normal.

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