What may be due to pent up demand or an urgency to complete on a house purchase before the possibility of another complete lock down, the UK housing market boomed throughout September and October.
New records were set and Rightmove made new forecasts in light of previous predictions.
The UK reached a new national record for the average price of a property coming on to the market with a 1.1% monthly rise bringing the average house price to £323,530. Prices are now 5.5% higher than they were this time last year with an average increase of £16,818 per property and the highest annual growth rate for over four years. Rightmove have forecasted that that this will increase and peak at around 7% by December.
Through September and October, the average 50-day timeframe to sell a property is fast than ever before which for the first time ever has seen more “SOLD” signs than “FOR SALE” signs.
September sales were the highest number of sales ever agreed in a month up 70% than in September 2019, with the number of active buyers 66% higher than a year ago although only slightly down from the July peak of 67%.
Tim Bannister, Rightmove’s Director of Property Data commented: “Previous records are tumbling in this extraordinary market, and there are still some legs left in the upwards march of property prices. We predict that the annual rate of growth will peak by December at around 7% higher than a year ago. Many buyers seem willing to pay record prices for properties that fit their changed post-lockdown needs, though agents are commenting that some owners’ price expectations are now getting too optimistic, and not all properties fit the must-have template that buyers are now seeking. Not only is the time left to sell and legally complete before the 31st March stamp duty deadline being eaten away by the calendar, but more time is also needed because the sheer volume of sales is making it take longer for sales that have been agreed to complete the process. Sellers and their agents should therefore be wary of being too optimistic on their initial asking price, as whilst activity levels continue to amaze there are some signs of momentum easing off from these unprecedented levels.”
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