Prices hit record high as properties sell at fastest pace ever recorded.

23rd April 2021

It’s not a time for sitting on your laurels! There couldn’t be a better time to move or buy your next property! That’s the message from property portal Rightmove as they reveal that we are now in the midst of the fastest-selling market and the highest average house prices since their records began.

The data revealed that the national average price of property has hit a new all-time high of £327,797, following a 2.1% (+£6,733) monthly jump and encouragingly, 145,000 properties were newly marketed this month, but not enough to meet buyer demand:

o   The number of sales agreed is up by 55% on same period two years ago, reducing the stock of properties that are available to buy to the lowest proportion ever recorded

o   There’s a buying frenzy for new stock, with both the average number of days to sell a property reaching its lowest ever level, and the number of houses selling within a week reaching its highest ever level

o   Two and three bedroom semi-detached homes are selling fastest

o   March saw time spent on Rightmove surpass two billion minutes in one month for the first time

Other positive news is that Rightmove predicts that although some of the froth is likely to come off the market later in the year once some government economic measures end, activity is widely expected to remain robust for the rest of the year.

Overview for the South West

A monthly price surge of 3.6% has propelled new seller asking prices to a new high, with the South West average now standing at £334,807. The big jump comes as buyer demand sets another new record, chasing the lowest ever proportion of property available to buy.

Across the Marchand Petit patch, we noted a drop in available stock by over 45% year on year on the 18^th of March. This is due to less properties coming to market but also an increase of almost 50% of properties being marked as Sale Agreed in March year on year.

Tim Bannister, Rightmove’s Director of Property Data comments: “This is only the second time over the past five years that prices have increased by over 2% in a month, so it’s a big jump, especially bearing in mind that the lockdown restrictions are still limiting the population’s movements and activities. The property market has remained fully open and is fully active to such an extent that frenzied buyer activity has helped to push the average price of property coming to market to an all-time high. The stars have aligned for this spring price surge, with buyers’ new space requirements being part of the constellation alongside cheap mortgages, stamp duty holiday extensions in England and Wales, government support for 95% mortgages and a shortage of suitable property to buy. There is also growing optimism due to the vaccination roll-out, which is helping drive the momentum for a fresh start in fresh surroundings. It does mean that this spring’s buyers are facing the highest ever property prices, though with properties selling faster in the first two weeks of April than ever previously recorded by Rightmove at an average of just 45 days to be marked by the agent as sold, it seems that those buyers are not deterred. Almost one in four (23%) properties that had a sale agreed in March had been on the market for less than a week, which is also the highest rate that we have ever recorded. If you are looking to buy in the current frenetic market, then you need to be on your toes and ready to move more quickly than ever before.”

Graham Norwood reported in The Times this week on this surge in house prices,

“It has been an extraordinary year. The world has shut down as a result of a global pandemic, and yet so many of us in Britain chose to move house. We all wanted more bricks and mortar, more green space, and to be part of a community where we could be healthy and happy. As a result, UK house prices hit a record high in 2020. The latest figures from the government show that values rose 8.5 per cent to an average of £252,000.

Prices are still rising: the extension to the stamp duty holiday, 95 per cent mortgages for younger buyers and now even 40-year repayment terms are set to keep demand high for the rest of the year.”  

Norwood further commented on The South West Market;

“Homeowners Alliance says the region’s house prices soared 10.2 per cent in 2020, but that’s slowing now”.

Quoted in the same article Marchand Petit Consultant, Roger Punch RICS commented;

“Exceptionally strong demand continues for lifestyle locations, particularly on or near the coast,”

This demand for a lifestyle/work balance has ensured that demand in coastal locations such as The South Hams remains strong, with no current signs of slowing down, however it will inevitably do so, so those thinking of moving are urged to move while the market is still buoyant.

If you are thinking of moving, now really is a great time, get in touch with us today to find out how we can help you not only sell quickly for the best price but also find your next home.