Strongest Ever Spring Sellers' Market
03 May 2022
The arrival of the spring home-selling season has arrived, and any signs of a slowdown in the UK property market have all but vanished. Many estate agents are experiencing the strongest sellers’ market on record, with average house prices in certain areas breaking £350,000. The rise in house values has been prompted by an imbalance between buyer demand and the number of properties for sale.
What is prompting people to move this spring?
At this moment in time, homeowners have the chance to sell their homes for a record price. With house prices at their highest, and less houses on the market, competition is fierce, meaning that house prices are going up and up.
Along with this, the gap between buyer demand and the lack of properties for sale is the widest we’ve ever seen at the start of a spring market, meaning that there’s a good chance of sellers having a choice between several buyers.
Also, the number of homes securing a buyer within the first week is also at an all-time high, therefore, sellers with a property priced and well-presented property can expect their property to have a shorter marketing period than usual. If you missed out on last year’s rush, you have another chance to get your home onto the market while conditions are still good.
Many of those selling in a strong sellers’ market should also consider the prospect of buying in the same market, where they will face stiff competition from other buyers. When compared to buyers who have yet to sell, having a buyer for your own house, subject to contract, puts people who are buying again in a favourable position, and these ‘power buyers’ are more likely to secure the house they want and negotiate their price.
What does this mean for the housing market?
All areas of the market are seeing very energetic conditions, and the market is expected to remain strong until supply and demand levels stabilise. As the market returns to a more even balance, overall transaction levels are expected to return to pre-pandemic levels. In comparison to the same period during a more balanced market in 2019, the number of sales agreed is, on average, 11% higher.