As the country celebrated 70 years of service from Queen Elizabeth II and the summer months approach, momentum in the housing market remains more steadfast than many had anticipated.
Sales volume and price growth are standing firm. Find out more in our housing market update June 2022.
The Uk’s longest running house price index, produced by Nationwide, commenced in the same year the Queen ascended to the throne. At that time the average price of a property was a little under £2,000 about £60,000 in today’s money. The 1951 Census indicates there were just over 13 million in households in England and Wales 65% of them living in private rented accomodation. Today 65% of the estimated 26 million households in England and Wales are owner occupiers. The official 2021 Census household figures will be released by the Office of National Statistics later this month.
- Average house price exceeds £250,000 for the first time, with annual growth of 8.4%
- New supply coming to market is starting to rise, up 7% compared to the five-year average.
- Behind strong headline price growth there are signs of market softening, taking price growth to +3% by the end of the year
- asking prices have been cut by 5% or more on one in 20 homes listed for sales in the 4 weeks to mid May.
- The average time to sell is also starting to rise from record lows for most types of property.
Average house price exceeds £250,000
House price growth at 8.4% means that the price of an average UK home rose by £456 in April, taking the average value to £250,200 – another record high. Some of the most affordable housing markets have seen the biggest price growth as there is more room for values to rise.
Time to sell is lengthening
The average time taken to secure a sale – measured in days between listing a property and sale agreed, fell to very low levels earlier this year. But the average time to sell is now starting to rise. Zoopla report that there is an element of seasonality in these figures, as we move on from the busy Spring market.
High levels of buyer demand mean that the market is still moving quickly, but the time to sell is starting to rise across most property types in most locations. Zoopla report that while the increased economic headwinds are already affecting sentiment at the more economic end of the market, those with more disposable income are still driving activity. Another reason to suggest that the market is softening is that one in twenty properties listed has been re-priced by at least 5%. This indicates that even amid high levels of demand, price growth may be hitting a natural ceiling.
We have listed some beautiful properties this month with many more to come. If you would like a chat about the market in our area or would like to book a valuation, please do get in touch and give us a call on 01257 451 673.
We hope you’ve enjoyed reading our housing market update June 2022. You can find out lots more about our expertise in the housing market at our blog.