Stat Of The Week
Rightmove breaks down the reasons why house prices are continuing to rise.
This week, Rightmove asked the question, “Why do asking prices keep rising?” This article will break down each reason Righmove explains precisely why figures are breaking records for “the third consecutive month”.
Record number of movers
Rightmove reported that asking prices have hit a high only seen this time of year back in 2015. With demand vastly outweighing the number of properties available, movers are willing to pay big to secure properties in short supply. Even with “180,000 new properties” hitting the market since last month, Rightmove claim that it’s still not enough as “Homes are selling faster than ever before, and not only that, a record number are being sold at or above asking price.”
Towns and villages have risen in demand as more and more movers are getting priced out of city living. The South West is recording its fastest sales rate ever recorded in England, with “28% of properties selling within a week of being listed”.
The Stamp Duty shockwave
The tax cuts afforded by the Stamp Duty holiday have allowed prospective buyers to look into markets that were not an option before the introduction of Stamp Duty savings. Potential savings of up to £15,000 are causing buyers to flock to the market with hopes of finding their dream home before the 30th September deadline.
Interest rates have plummeted
Like the Stamp Duty holiday, 95% mortgages have caused many buyers to flood the market searching for properties that they were once unable to afford.
While Rightmove notices “early signs of the market cooling”, the number of agreed sales continues to grow. With the draught of available properties, these figures will most likely plateau in the coming months. For the time being, the market looks incredibly healthy for buyers, something to keep in mind for estate agents looking to provide the latest thought leadership on the property market.