The frozen housing market in the UK is finally thawing, seeing a near-record high according to the real estate website Rightmove. With the election finally in the past, buyers are jumping into the market and quickly outstripping supply. The site has listed increased visits in the past month by interested buyers. The average home price on Rightmove has increased by £2,589 over the past month. The average is now £309,000, just £40 shy of the all-time high from June of 2018.
Demand is rising nearly all over the country, pushing housing prices up.
In most areas, homes are selling more quickly and for higher prices than last year. Buyers who were waiting for more political certainty will be paying the price, though experts warned budgets aren’t increasing. The biggest increases in monthly prices are in Yorkshire and Humber, which both saw prices increase by 3.5%. London saw a 2.7% increase in the same period. Only the East Midlands saw a drop, of 0.5%.
It’s currently a great time to sell, while the demand outstrips supply. The average home will be selling shortly after coming on the market as well, meaning it’s great for those wanting to sell quickly. Sellers should still be cautious, as it is reported that buyers are not willing to increase their budget by much or at all. While employment is high, the average person has not had their housing budget increase. This is attributed to political uncertainty over the new government and an upcoming trade negotiation with the European Union.
The housing market has been in a slump since the 2016 Brexit results. Three years of delays and general dithering caused a great deal of market uncertainty, with London being hit hard. Low-interest rates, high employment, and a shortage of available homes have finally buoyed the market. However, this may not last as a post-Brexit trade deal needs to be negotiated. Boris Johnson’s government still needs to prove itself before economic confidence returns to the UK. It is predicted that the market will flatten again by January, which is the deadline for the trade deal with the EU.
What does all this mean for buyers, sellers, and estate agents?
For buyers, the shortage of available homes means they’ll be facing higher prices and greater competition. The market will be better for them, but their budget should be watched closely. For sellers, it’s a great time to jump into the market. Prices will be higher and homes will sell quickly. However, greed could be costly if they aren’t careful. Pricing too high for the market will lead to their home failing to sell.
Estate Agent Software
For agents, it’s a big time! They need to be sure their estate agent software is up to date to handle all the work that will be coming their way. Market trends need to be watched, advertising copy written, and contact kept with clients. The right estate agent software will make their lives easier during the busy spring market.