According to Rightmove:
- The average price of property coming to the market jumps by 1.8% (+£6,647) this month to reach a new record of £372,894 in a delayed response to the higher-than-expected level of market activity since the start of the year:
- This 1.8% monthly increase is the biggest of the year so far, and is significantly higher than the historic average May rise of 1.0%
- Agreed sales numbers are currently just 3% behind the last more normal pre-pandemic market of 2019
- The discount from final asking price to agreed sale price has steadied at an average of 3.1%, in line with normal market levels, reflecting home-mover confidence in the outlook for the market
- Whilst increased price confidence appears to be more justified in the lower and middle market sectors, there are some signs of over-optimism in the top-of-the-ladder sector, as some discretionary buyers hang back:
- Buyer demand is 1% lower than in 2019 for top-of-the-ladder properties, compared with 3% above 2019’s level in the second-stepper sector, and 6% above in the first-time-buyer sector
- Average mortgage rates are remaining steady despite another increase in the Bank of England base rate:
- An average 5-year fixed, 15% deposit mortgage is now 4.56%, compared to 5.89% last October
