What does the busiest ever housing market mean for buyers and sellers?
The spring property market is moving at a fast and furious pace. Heightened demand from buyers has pushed the average price of property coming to market to an all-time high, while homes are selling at the fastest pace ever recorded.
With property in such high demand, even 145,000 new property listings on Rightmove so far this month has not been enough to meet the high levels of buyer demand that that property portal are seeing. More houses have sold within the space of a week than ever before.
Asking prices are rising and the housing market is busier than ever – but what does this all mean if you want to buy or sell a home right now? Quealy & Co Estate Agents in Sittingbourne explain why it is the ideal time to sell your home and how to ensure you are prepared to move quickly.
Why is the property market so busy?
Growing optimism due to the Roadmap our of lockdown, Coronavirus vaccination roll-out, the return of low-deposit mortgages and the stamp duty holiday extension in England and Wales are all factors helping to drive the momentum for home-hunters to seek a fresh start in new surroundings.
The lack of new property coming to market so far in 2021 has added fuel to the pace of the market, which has meant much fewer available properties for buyers in recent months.
We can’t compare this period with the same period a year ago, because the housing market was effectively suspended during the first national lockdown. Instead, we can see that the number of properties coming to market in the last month is up by 3% in comparison to the same period in 2019. While this shows us that the volume of new property listings is returning back to normal levels, this is still massively outpaced by buyer demand.
In contrast, the number of sales agreed is up by 55% on the same period two years ago, which means the proportion of available property is at its lowest ever recorded by Rightmove.
This surge in activity means that buyers this spring are facing the highest-ever average asking prices from sellers.
Why are asking prices rising?
The combination of strong demand from buyers ready to move, coupled with the current shortage of property for sale, is pushing asking prices up.
The national average price of property coming to market has risen by £6,733 within a month, hitting an all-time high of £327,797.
This is the second time over the past five years that prices have increased by over 2% in a month, so it’s a significant jump, especially when some lockdown restrictions are still limiting the population’s movements and activities.
The property market has remained open and active since May 2020, meaning that frantic buyer activity has helped to push the average price of property coming to market to an all-time high.
Yet despite the price jumps, buyers don’t seem discouraged. This is now the fastest-selling market that Rightmove has measured since their records began.
How long is it taking to sell a home?
Properties sold within an average of just 45 days in the first two weeks of April, which is faster than has ever been recorded on Rightmove.
Almost one in four (23%) properties that had a sale agreed in March had been on the market for less than a week.
Which properties are selling the fastest?
Two- and three-bedroom semi-detached houses are being snapped up fastest, with 30% of those selling within just a week of being marketed. However, buyers who are in a position to move are competing for all types of properties across a range of price levels.
What does a busy housing market mean for home sellers?
If you’ve been holding off to see what will happen in the housing market, then now is a great time to sell your property in the Sittingbourne area.
The spring surge in buyer demand puts sellers in a position to achieve a good price and a quick sale, especially if you don’t have an onward purchase. The search for more space and new surroundings is still driving the property market, with prices rising for the right property in the right location.
What does it mean for buyers?
It is a positive sign to see more property listings coming to market in April to help with the shortfall. With the vaccine roll-out progressing, the roadmap out of lockdown progressing, and continued strong demand from buyers, we should see more sellers putting their homes on the market over the coming weeks and months.
Advice for buyers
Please bear in mind that if you are looking to buy in the current busy market and you do find the right property, you will need to be ready to move more quickly than ever before.
Having both a mortgage agreed in principle and your own property already sold subject to contract will help to get you to the front of the queue if you’re looking to buy this spring.
Advice for sellers
Quealy & Co Estate Agents have a record-breaking list of buyers looking for a property and it could be yours. Get in touch with our Sittingbourne office today for your free, no obligation property valuation. You will probably be surprised just how much it has increased in value!
Alternatively, you can try our instant online valuation tool for an estimation of how much your property is worth: click here