The latest data from Rightmove shows that average asking prices for new homes being listed for sale have risen by 0.8%, or £2,974, this month to £370,759 and although prices usually increase in September, this year’s national leap is double the long-term average.
According to Rightmove, the price surge is being supported by increased activity levels with the number of sales agreed up by 27% year on year and new sellers have also increased by 14% compared to this time last year. As a result, the average number of available homes for sale per estate agent is at its highest since 2014.
In Yorkshire and the Humber, the monthly price increase stands at a more normal 0.3%, meaning the average asking price in the region is now £253,513, which is 2.9% higher than this time last year.
Patrick McCutcheon, head of residential at Dacre, Son & Hartley, which has 20 offices in West and North Yorkshire, said: “This year the traditionally busier autumn market appears to have started early, which follows a strong summer in Yorkshire. Mortgage rates are also heading downwards, and the choice of property is increasing, which is releasing pent-up buyer demand and encouraging more potential movers to act.
“However, despite Rightmove’s encouraging figures, the market remains cautious as it awaits further interest rate cuts and the October Budget, which means accurate pricing is key to securing a sale. There’s very little appetite amongst buyers for homes that are overpriced, so working with an experienced and knowledgeable local estate agent can make all the difference for motivated sellers.”
Tim Bannister, Rightmove’s director of property science, commented: “The autumn action has started early with a strong rebound in activity from both buyers and sellers compared to the subdued market at this time last year, continuing the momentum from the better-than-expected summer market. The certainty of a new government followed by the first Bank Rate cut in four years invigorated the market, opening a window of opportunity for movers to act. Some of this will be pent-up demand from those who had to hit the pause button until now. However, windows of opportunity tend to need a momentum of good news to stay open, and there are still uncertainties ahead which could cause some of the current market activity to ease.
“Early autumn movers who are acting quickly and taking advantage of the improved market conditions are getting the pick of quality homes for sale. Homeowners who are thinking of coming to market soon shouldn’t let the increased activity make them over-optimistic and must price competitively to sell. With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price. There are question marks over how the market will be affected by announcements in the Autumn Statement, but until then we expect that market momentum will continue as the autumn action rolls on.”
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