June, 2022
The average price of property coming to market has hit a new record for the fourth consecutive month, rising to £367,501. This month’s increase of 2.1% (+£7,400) is the highest at this time of year since May 2014 and marks a national jump of £55,551 in asking prices in the two years since the housing market shut due to the pandemic. This compares to a rise of just £6,218 in asking prices in the two years before the pandemic and illustrates how the frenzied market activity has led to two-year price growth in cash terms never before witnessed in over twenty years of tracking prices.
The number of properties available to buy is 55% down on the levels seen in 2019, meaning that supply and demand look likely to remain out of kilter for at least the rest of the year.
The number of sales agreed is up by 12% in the year to date compared to 2019 even with restricted choice, though is down 17% compared to the exceptional market of the same period last year.
These numbers suggest that a lack of homes for sale rather than a lack of desire from buyers is what is dictating the pace of the market.
Houses in Solihull are taking on average 29 days to sell and the house price in this area has increased by 2.5% since April 2022 and 6.9% year on year. The average house price in this area is now £302,600.
Speed of market means available properties down 16% compared to last year and down 55% compared to 2019, with new stock most desperately needed for two and three bedroom semi-detached homes.
Sales agreed are up 12% year to date compared to the same period in 2019, and down 17% year to date compared to 2021
We expect to see things starting to ease slightly in June however properties completing to be high
This fourth consecutive price record comes alongside a fourth successive interest rate rise, but this rate rise and other household economic concerns do not appear to have dented the motivation and urgency to move that are felt by many, though there are signs that the market is starting to ease. The number of buyers contacting estate agents is 14% down on the stamp-duty-fuelled market of this time last year but is up by 31% on the more comparable market of 2019. We will keep a close eye on this and analysis this closer to the next increase which is due in October 2022.
Now is a great time with many properties receiving multiple viewings and multiple offers, and in many cases, sales are agreed for significantly more than the asking prices.
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