Saturday, May 28, 2022
UK

House prices hit new record in ‘spring frenzy’

House prices

The price of property coming to market has hit a new record high for the third consecutive month

The latest Rightmove HPI data shows that despite growing economic headwinds, the 2022 market continues to set new milestones for price and activity levels.

The price of property coming to market has hit a new record high for the third consecutive month. Month-on-month prices have risen by an average of 1.6% or £5,537 ($7,038.99), and over the last three months by £19,082 ($24,258.28).

This figure is the largest three-month price increase that Rightmove has ever recorded, with high buyer demand enabling sellers to ask and achieve ever higher prices. With not enough property available on the market, sellers are able to find a buyer quicker than ever previously seen by Rightmove, and twice as quickly as in the same period in the more normal market of 2019.

This momentum is despite the growing economic headwinds, though forecasts show that these headwinds will slow the pace of price rises as the year progresses.

Tim Bannister, Rightmove’s Director of Property Data comments: With three new monthly price records in a row, 2022 has started with price-rise momentum even greater than during the stamp-duty-holiday-fuelled market of last year. While growing affordability constraints mean that this momentum is not sustainable for the longer term, the high demand from a large number of buyers chasing too few properties for sale has led to a spring price frenzy, a hat-trick of record price months, and the largest price increase for a three-month period Rightmove has ever recorded.

The strong momentum has carried over from last year and, combined with the impetus of the spring moving season, has delivered the quickest selling market we’ve ever seen. The high speed of the market and competition among buyers when making an onward move will be deterring some owners from putting their homes up for sale, he said.

He said: However, if you can secure both a quick sale and a quick purchase then it’s a lot less stressful than the uncertainties of a slower market when finding a buyer for your own home can drag on for months or not happen at all. Over 125,000 new sellers have taken advantage of the great sellers’ market this month, but more are needed in all areas and in all property sectors to meet high buyer demand.

Across Great Britain, and in all of Rightmove’s lower, middle, and upper market sectors, properties are at new record price levels. This is only the second time since 2007 that Rightmove has measured such an event, with the previous ‘full house’ being earlier in this property frenzy in October of last year.

The frenetic activity continues however, with this month seeing properties selling faster than ever previously recorded by Rightmove. This time in 2019, the average time to sell was 67 days. It now stands at an average of just 33 days before a property is marked as sold subject to contract on Rightmove.

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