Reported by Robyn Hall - The Negotiator
Average new seller asking prices rose by just £14 over past month, according to Rightmove, but first-time buyers are rejoining market driven by increasing rents and recovery in mortgage pricing.
Average new seller asking prices rose by just £14 from January to February – the smallest ever increase recorded by Rightmove during the period and a sure sign that sellers are heeding agents’ advice to price right first time.
But while any change in asking prices remained flat latest sales agreed figures are being boosted by a first-time buyer market driven by increasing rents a recovery in mortgage pricing. The number of sales agreed is now just 11% down on 2019’s levels, recovering from 15% down at the start of the year, and 30% down in the aftermath of the mini-budget.
DEPOSIT
Someone looking to take out a five-year fixed mortgage with a 15% deposit would now be looking at an average rate of 4.82%, compared with 5.90% in October. The latest Rightmove snapshot of buyer demand also shows the number of people contacting agents is up by 11% in the last two weeks compared with the same period in 2019’s more normal market.
Tim Bannister, Rightmove’s Director of Property Science, says: “The frantic market of recent years was unsustainable in the long term, and our key indicators now point to a market which is transitioning towards a more normal level of activity after the market turbulence at the end of last year.
This month’s flat average asking price indicates that many sellers are breaking with tradition and showing unseasonal initial pricing restraint.
“We are transitioning into a slower paced market, where buyers will take longer to find the right property at the right price due to the higher cost of servicing a mortgage.”
MOTIVATED
And he adds: “Although the first-time buyer sector has been hardest hit in terms of the number of buyers enquiring, those who are in the market and able to move are motivated to agree a purchase, likely driven in part by high and increasing rents, and a continued desire to own their own home.
“Conversely and an indication of hyper-local and sector differences, sales in the top-of-the-ladder sector are down by 16% in the first two weeks of February compared with the same time in 2019.”
