Sixth price record but market cooling from boil to simmer
Price of property coming to market hits sixth consecutive record of£369,968, up 0.4% in the month (+£1,354) New first-time buyers face record prices and rising interest rates, meaning that their monthly mortgage payments are now 20% (+£163) higher than the start of the year
More buyers may lock in longer mortgage terms to bring more certainty to their outgoings, especially as lenders are now offering virtually the same rate for either two-year and five-year fixed mortgages
Rightmove revises full-year 2022 house price forecast up from 5% growth to 7% despite cooling market, as record low stock volumes struggle to recover enough to meet buyer demand, though there are signs of this improving. Number of new sellers coming to market is up by 13% compared to this time last year, although available stock is still 40% down on June 2019’s levels which will help to underpin prices.
Demand to move is coming off the boil but remains high despite economic and political uncertainty:
Buyer demand is up 26% on June 2019’s levels, though down 7% on last year’s frenzied market
- The average price of property coming to market sees a sixth consecutive record this month, rising by 0.4% (+£1,354)to £369,968.
- A continuing desire to move and low numbers of homes for sale are driving further price growth even at a time when personal finances are becoming increasingly stretched. Buyer demand continues to exceed historically normal levels and is now 26% higher than at the same time in 2019, although down 7% on June 2021.
- There are signs of the seriously depleted stock situation improving, with the number of sellers up by 13% compared with this time last year, but the number of available homes for sale is still 40% down on where it was in 2019. This significant shortfall from more normal stock levels will help to underpin prices this year, as there are simply not enough homes coming to market to correct the balance between supply and demand.
- The slow rate of stock recovery has led to Rightmove revising its 2022 price forecast, with 7% annual growth now expected by the end of the year across Great Britain, up from our 5% forecast at the start of the year
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