Housing Market still frenetic, but early signs of slow down due to record prices and lack of choice.
So says Rightmove’s summary of the housing market for June:
- Price of property coming to market rises by a relatively modest 0.8% (+£2,509) this month, though still the largest rise at this time of year since 2015, and prices are now at a record in all countries and regions of Britain
- High prices combined with an all-time low in the number of available properties on agents’ books are starting to slow the market’s frenetic pace, with sales agreed in May 17% ahead of the same period in 2019, slackening from April’s +45%
- Top-of-the-ladder buyers are more insulated from mass-market’s increasingly stretched affordability:
- Cash-rich relocators from more expensive areas also fuelling prices in fastest-growing regions:
Whilst we are seeing record houses prices right across the UK further stretching affordability, buyer’s ability to move has also been significantly constrained by an unprecedented lack of choice of property to buy and this they report, is starting to reducer some buyers’ ability, or desire, to move.
Rightmove consider that there are early signs of a slackening in the incredible pace of activity that we’ve seen over the last year and comment that such ‘super-charged’ activity cannot go on forever, but they expect the market to remain vigorous for at least the remainder of 2021.
The number of homes coming to the market fell in June, now down by 17% on the comparable period in 2019. And demand is still particularly high at the top-of-the-ladder market for most areas for homes over £500,000, up by 49% compared with May 2019.
The Market From The Robert Bell &Co Prospective
Over the past 12 months, we’ve seen huge up uplift in demand in the Lincolnshire housing market. This has far surpassed anything any we have seen from previous market surges, other than possibly that seen in 1987/88. We have been regularly receiving offers from multiple buyers for a home. This often results in us requesting highest and final offers with homes selling on many occasions for in excess of the original asking or guide price. The competition for each property has been further increased by a slowdown in the number of homes coming to market.
Our office sales teams noticed very significant growth in the number of people looking to relocating into the area from London and the South East, possibly extenuated by Mayfair Office in London providing us with such direct access to this market compared with other agents, as well as from the East Midlands and South Yorkshire. Such buyers have been revaluating their lifestyle requirements. Two years ago most of the county would have been viewed as being beyond reasonable commuting. Now, with more flexible weekly home/office working, with many city jobs in London, Leeds and Nottingham based on two/three days home working with the balance back in the office, Lincolnshire’s historic city, small market towns, charming villages, delightful countryside and relatively low house prices are drawing strong interest. Previously such buyers thought Lincolnshire, as a lifestyle opportunity, was geographically beyond their reach - but no more.
As we have said in previous market updates, with demand strong and pricing high, now is the time for vendors to capitalise on these favourable market conditions, especially during these peak summer months when properties look their best and while many buyers will be looking to secure a move in time for the new school term in September.
Tony Wing DipSurv MRICS FNAEA