August, 2022
The average price of property coming to market sees a sixth consecutive record this month, rising by 0.4% (+£1,354) to £369,968. A continuing desire to move and low numbers of homes for sale are driving further price growth even at a time when personal finances are becoming increasingly stretched.
Buyer demand continues to exceed historically normal levels and is now 26% higher than at the same time in 2019, although down 7% on June 2021.
There are signs of the seriously depleted stock situation improving, with the number of sellers up by 13% compared with this time last year, but the number of available homes for sale is still 40% down on where it was in 2019. This significant shortfall from more normal stock levels will help to underpin prices this year, as there are simply 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.
Properties in Solihull had an overall average price of £358,253 over the last year.
The majority of sales in Solihull during the last year were semi-detached properties, selling for an average price of £314,086. Detached properties sold for an average of £617,895, with terraced properties fetching £247,936.
Overall, sold prices in Solihull over the last year were 2% down on the previous year and 12% up on the 2019 peak of £319,464.
Solihull was one of the bottom five performing areas for annual growth in the West Midlands
The sales market is moving very rapidly in Solihull compared to the average over the last five years.
It takes 20 days for a home to go under offer after coming on to the market. Typically, it would be 37 days. This means it might be a good time to sell your home.
In the last month, demand from buyers across the region was stronger than normal. The number of homes for sale is below the five-year average.
With the summer holiday season upon us, we usually start to notice a dip in activity of people wanting to sell, and buyers available to view properties.
Thigs usually quieten down during the month of August but as the schools go back in September, activity starts to pick up again.
Demand is likely to return to more normal levels in the second half of the year due to the rising cost of living and affordability concerns, however the prospect of further interest rate rises may drive some to act now to lock in a longer fixed-term mortgage rate.
This is even more likely because the gap between interest rates for shorter and longer term mortgages has been closing in recent years, and they are now virtually the same. For example, the average interest rate for a 75% loan-to-value mortgage is now 2.9% for either a two-year or five-year fixed deal. Historically lenders offered a lower rate on a two-year fix, with a difference of as much as 1% between the two deals over the past five years.
Now is a great time to sell whilst house prices are still very high. If you are interested to know what your property is worth, please click here to book a market appraisal.
