New data from Zoopla’s latest House Price Index expects 500,000 sales completions in the first half of 2023, meaning that the property market is on track for 1 million sales.
The data revealed that, in recent weeks, the demand for homes reached its highest level since last October when the fallout of the mini-budget hit activity. Demand is 16% higher than this time in 2019.
Sales are being supported by greater availability of homes for sale which is 65% higher than this time last year. The average estate agent now has 25 homes available compared to a low of 14 this time last year.
Also, new data from Rightmove reveals that Falkirk in Stirlingshire is Great Britain’s fastest selling market, with sellers in the area finding a buyer in an average of 22 days.
Across Great Britain, it is currently taking 55 days on average to find a buyer and a further 165 days to complete a sale.
Whilst levels of buyer demand are 43% lower than a year ago, the number of sales being agreed are just 16% lower than last year. Improved choice and greater realism by sellers is supporting sales.
Properties are also taking longer to sell; the average time to sell from a home being first listed, to going under offer and sold subject to contract has jumped 71% (15 days) compared to 12 months ago.
Year on year, there has been an increase of 5% in the share of sales in the bottom 40% of the market (by price) and a drop of 4% in the share of sales in the top 40% of the market. This indicates continued demand from first-time buyers or second-steppers.
Commenting on the latest report Richard Donnell, Executive Director at Zoopla said:
“The housing market is arguably more balanced than it has been for more than three years. Levels of supply have recovered and buyers and sellers are not miles apart on where they see pricing and this means deals are being agreed at an increasing rate.
Prices are drifting lower compared to a year ago but fears of a major downturn in prices are overdone. Falling mortgage rates and a strong labour market are supporting activity levels from committed movers who need to be realistic on price if they are serious about moving home in 2023. We expect to see levels of activity continue to steadily improve over Easter and into the summer and H2.”
Prices may be “falling”, however, demand continues to improve with the most affordable areas led by Scotland, Wales, the North East of England and London continuing to see above-average demand.
Areas with the least demand in the UK are in regions where prices jumped the most over the pandemic and where prices are higher than the national average.
Kevin Shaw, National Sales Managing Director at Leaders Romans Group (LRG) said:
“We’re also confident about the coming months: as spring has sprung, the daffodils are out and we’re entering the traditional season of house moves. Added to that, an increase of ‘sold’ signs is providing some encouragement, as is the fact that house price correction has now taken place, interest rates and mortgage rates are unlikely to go much higher and lenders are competing for borrowing so rates.
