Average Price
May is typically a strong month for price growth, with new price records having been set in May in 12 of the previous 22 years. The average price of properties coming to the market for sale rises by 0.8% this month (+£2,807) to a new record of £375,131.
Price growth is still led by the top-of-the-ladder sector, with prices in this sector up by an average of 1.3% compared with last year. However, since the last price record set a year ago in May 2023, average prices are only 0.6% higher overall, a reminder that the market remains very price-sensitive.
Supply & Demand
Pent-up demand is a key driver behind increased buyer and seller activity, despite mortgage rates remaining elevated for longer than anticipated. In the first four months of the year, the number of sales being agreed between buyers and sellers is 17% higher than in the same period in 2023. These trends are being driven mostly by the top-of-the-ladder sector.
We anticipate the number of completed sales transactions this year to reach around 1.1 million.
One strategy that Rightmove’s market-leading data has identified as providing sellers with the edge to speed up a sale, is to work with an estate agent to price competitively from the outset and avoid the need to reduce the asking price after coming to market.
Interest Rates
With mortgage rates now more stable, albeit still high, as well as greater buyer choice, many buyers who had postponed their moving plans in the top-of-the-ladder sector, appear to be returning.
The Bank of England has decided, yet again, to keep the base interest rate at 5.25%, with the next meeting due on 20th of June.
The lengthy time to complete a sale after finding a buyer, though, remains a challenge for both agents and movers. The average time between agreeing a sale and legal completion is a painful five months, or 154 days.
Regional Trends: North East
The average price for homes in the North East is £190,060 with a 0.1% increase since last month, and a 5.8% 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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