Date Published 10 May 2023
🏠 New seller asking prices rise by just 0.2% (+£890) this month to £366,247, which is lower than the average increase of 1.2% for this time of year.
🌬️ This unseasonal pricing restraint is a sign that many new sellers are taking note of the economic headwinds and the transitioning of the housing market to a slower pace and more normal activity levels, last seen in the pre-pandemic market of 2019.
📈 The number of sales agreed is now on a par with the same period in 2019, with agreed sales volumes just 1% behind March 2019, defying the expectations of many.
📊 Monthly sales agreed volumes are now higher than in September for the first time since the mini-Budget took place, but sales agreed are still 18% behind last year's exceptional market as we transition to a more normal level of sales activity.
🏠 First-time-buyer type properties have reached a new record price of £224,963 this month, which may appear surprising given the economic headwinds, but illustrates the continued strong desire from would-be first-time buyers to own their own home.
💰 Average mortgage rates have been falling over the last few weeks, with lender competition to secure business now strongest in the traditional first-time buyer loan-to-value ranges of 85% and 90%.
🔑 The first-time-buyer sector typically accounts for over a third of all sales, which are often the start of chains, so positive sales agreed figures are good for the health of the whole market.
❌ Sellers in the upper sectors may need to show a greater degree of pricing restraint to attract buyers in this more price-sensitive market.
👍 More competition amongst lenders in the smaller deposit, higher loan-to-value ranges is positive news for would-be first-time buyers who have saved up their deposit and can still afford to move.