Average Price
The average price of property coming to the market for sale drops by 0.3% (-£1,277) this month to £378,240. However, it follows stronger than expected price growth in April & May and appears to be in part a delayed response to increased stamp duty tax in England from April. The continued decade-high level of buyer choice is also continuing to put downwards pressure on prices. It appears that more competitive pricing is helping sales activity
With more new sellers still coming into the market than new buyers, pricing realistically remains key for a successful sale.
Supply & Demand
The number of new buyers entering the market in the month of May was 3% ahead of the same period last year. However, the number of homes coming onto the market for sale is 11% ahead of the same period last year, with the number of new buyers still being outpaced by new sellers. With buyer choice so high, the market is very price sensitive, especially with some mortgage rates slightly rising over the last few weeks.
Interest Rates
Buyer activity remains resilient, with affordability improving for some. Average wages are rising faster than house prices, and many lenders are loosening their affordability criteria.
Rightmove’s weekly mortgage tracker shows that the current average five-year fixed interest rate is 4.61%, only slightly down from last year’s 5.04%.
The current base rate stands at 4.5%, with the next meeting due on 7th of August.
Regional Trends: North East
The average price for homes in the North East is £194,578 with a 0.5 decrease, and a 1.3% increase since the same period last year. On average, it takes 50 days to sell a property in the North East region.
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Source: Rightmove
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