‘Gloomy Property Predictions Looking Up…

Sellers and their agents have become more confident about prices, but there are still some signs of “over-optimism” for higher-priced homes, Rightmove says.

It has led the property’s website to say that the gloomy start of the year predictions for the market are looking increasingly unlikely.

The latest requested price data from the portal shows that average new listing prices increased 1.8% this month, up 1.5% annually, compared to May’s all-time average increase of 1.0%.

While there was some caution in asking new sellers for prices at the start of the spring season, Rightmove said, with buyer demand 3% higher than in 2019 and agreed sales only 3% below levels. of 2019, this positive activity has belatedly trickled down to sellers. .

The discount from the final sale price to the agreed sale price has stabilized at an average of 3.1%, Rightmove said, in line with normal market levels, “reflecting the confidence of movers in market prospects.

However, Rightmove cautioned that while the rise in seller price confidence in the first-time and second-time buyer housing sectors has more justification, there are some signs of over-optimism among typical upper-tier homes. of the stairs.

Buyer demand is 1% lower than in 2019 for prime properties, compared to 3% above 2019 level in the second-step sector and 6% above in the buyer sector for the first time.

The Rightmove Home Price Index showed listing values ​​for typical first-time buyers and second-tier homes rose 0.6% and 0.7% respectively, while homes at the top of the ladder saw sales prices increase 2.8% per month.

Of course, there is no guarantee that sellers will get the prices they ask.

Tim Bannister, director of property science at Rightmove, said: “This month’s sharp jump in new seller asking prices seems like a late reaction and a sign of increased seller confidence as we would normally see an increase monthly so large in the early spring season”. .

“One reason for this surge in confidence may be that the gloomy early-year predictions for the market are looking increasingly unlikely.

“What is much more likely is that the market will continue to transition to a more normal level of activity this year after the exceptional activity of the pandemic years.

“Stable mortgage rates and a generally more positive outlook for the economy are also contributing to increased seller confidence, although more twists and turns are likely to come.

“The market remains very price sensitive and it’s important that new sellers don’t hurt their sales prospects by initially overpricing and lowering later, and dealers report that it’s realistically priced new instructions that sell best.”