Average Price
The average price of newly listed homes for sale rises by 0.8% (+£2,929) in April to £373,971. Price growth this month is mainly driven by higher-priced, top-of-the-ladder homes (4+ bedrooms), where more buyers are typically discretionary movers and cash purchasers. This means they’re less reliant on mortgage borrowing and less sensitive to increased borrowing costs.
Supply & Demand
With the number of homes for sale at an eleven-year high and buyers having more choice than in any April over the past decade, competition between sellers remains intense, which is why pricing right from the get-go is essential.
Despite rate rises usually weighing most heavily on more mortgage-dependant first-time buyers, demand has so far proven most resilient in this group.
Interest Rates
A typical mover is now able to borrow more, due to last year’s review of the Loan-To-Income cap and reminder to lenders about stress testing flexibility by the Financial Conduct Authority.
The current base rate set by the Bank of England stands at 3.75%, with the next meeting due on the 18th of June.
Regional Trends: North East
The average price for homes in the North East is £198,416 with a 1.8% month-on-month increase and a 2.2% increase since the same period last year. On average, it takes 55 days to sell a property in the North East region.
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Source: Rightmove
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