Average Price
The market remains very price-sensitive and operates at different speeds across its many segments, with prices and sales activity rising more slowly in the more mortgage-dependent sectors.
Average new seller asking prices rise by 1.1% this month (+£4,207) to £372,324, a substantial monthly price increase, but in line with the ten-year average for this time of year. The average price of properties coming to the market for sale is now just £570 short of May 2023’s record of £372,894, while the annual rate of price growth increases to 1.7%- the highest level for 12 months.
Supply & Demand
The number of new sellers coming to the market is up by 12% compared to this time a year ago, while the number of sales being agreed is up by 13%. Much of this activity is occurring in the top-of-the-ladder sector, with the number of new sellers in this sector up by 18% compared to this time last year, and the number of sales agreed up by 20%.
By contrast, activity is rising more slowly in the mass-market, more mortgage-dependent first-time buyer and second-stepper sectors, which makes up the majority of the market. The number of new sellers in both sectors is up by 10%, while the number of sales agreed is up by a more modest 9% and 13% respectively compared with last year.
Interest Rates
Agents report that despite the rise in prices and general sense of greater optimism, high mortgage rates are continuing to stretch affordability for the typical buyer. Rates are remaining high for longer than some expected at the start of this year, which is likely having a greater impact on movers in these sectors.
Overall, the number of sales being agreed is now level with 2019 despite buyer conditions being much more challenging, with the average five-year mortgage rate now at 4.84%, compared with 2.45% in April 2019, while average property prices are 22% higher.
Regional Trends: North East
The average price for homes in the North East is £190,060 with a 1.3% increase since last month, and a 3.4% increase since the same period last year. On average, it takes 60 days to sell a property in the North East region.
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Source: Rightmove
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