Average Price
The average price of newly-listed homes for sale rises by 1.2% (+£4,333) in May to £378,304, exceeding the typical ten-year May increase of 1.0% and signalling a stronger than usual seasonal uplift. Housing market activity remains surprisingly confident overall despite global uncertainty and the resulting cost-of-living pressures.
Homes priced realistically from the outset tend to sell far more quickly, with properties that required a price reduction spending an average of 127 days on the market, compared with just 36 days for those that did not need a price reduction – a gap of around three months.
Supply & Demand
With the number of homes for sale at its highest level for this time of year since 2015 and 32% of listings of existing homes for sale seeing a price reduction, new sellers need to price more competitively, as over-optimistic initial pricing is leading to longer selling times.
Interest Rates
Mortgage affordability has improved slightly this month, with Rightmove’s daily mortgage tracker showing that the average two-year fixed rate has fallen to 5.18%, from 5.42% at this time last month, reducing the average monthly mortgage payment by around £50. This provides a small but welcome boost to buyer confidence and budgets, particularly as a typical mover is now able to borrow more following last year’s review of Loan-To-Income limits and other affordability criteria. Continued growth in average earnings is also helping to offset some of the impact of higher mortgage rates over recent months.
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 £200,789 with a 1.2% month-on-month increase and a 2.7% 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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