INCREASING CONFIDENCE

Why have house prices risen this month?

This time of year is the busiest season for the housing market. Lots of people kick start their moves when the days get longer and the weather starts to warm up.

And because new sellers know they may have more potential buyers viewing their home, we often see asking prices edge up by around 1% at this time of year. But we’ve actually seen prices rise by almost double that this month. The average asking price for a home in Great Britain has increased by 1.8% in May, which has pushed prices to a record high of £372,894.

This larger than usual monthly increase follows lots of speculation about what might happen in the housing market this year. Towards the end of 2022 and at the start of this year, we saw some people pause their moving plans.

But this month we’ve see demand from potential home-buyers continue to exceed the levels during the same period before the pandemic, with 3% more people enquiring to view properties for sale. Our property expert, Tim Bannister, says: “This month’s jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season. One reason for this increased confidence may be that the gloomy start-of-the-year predictions for the housing market are looking increasingly unlikely.”

What does this mean if you’re thinking of selling your home?

We’re now in a much steadier housing market than we have been in recent years. If you’re looking to put your home on the market soon, the guidance from estate agents is to make sure it’s priced right first time, to avoid the need for a reduction later. Homes that are priced in line with the current market trends are the ones that are getting interest from buyers.