Surging Home Sellers Kickstart 2025 Property Market
Rising asking prices on Rightmove as a record-breaking number of homes get listed in the New Year.
In a robust start to the new year, a wave of homeowners have declared their intentions to sell their properties. This surge makes for an exhilarating market as estate agents and property sellers greet the new year with enthusiasm.
Rightmove's latest Housing Market Index for January reveals a maverick jump in average asking prices, marking the largest increase for this month since 2020. With a brighter and optimistic outlook, potential buyers rush to snatch their dream homes before surgeging house prices occur once stamp duty thresholds plummet in April, dramatically inflating purchase costs.
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Rightmove gathers insights from their data for January, showcasing a 1.7% monthly increase and 1.8% annual hike in the average price of properties hitting the market. This significant increase in asking prices is the most substantial since January 2020, placing the typical home asking price at a whopping £366,189. However, this figure remains nearly £9,000 shy of May 2024's record, demonstrating buyer affordability constraints.
Thanks to this energetic start, Rightmove has officially christened the property market's opening to the year as a remarkable one.
New Year, Sparkling Housing Opportunities Await
Data from Rightmove indicates record-breaking numbers of new sellers have flooded the market since Boxing Day. This presents buyers with a massive influx of options at the start of a year since 2015.
The number of brand-new properties coming to market boosted by 11% when compared to the same opening-of-the-year period last year. Simultaneously, the number of inquiries made by buyers to agents about properties for sale since Boxing Day increased by a staggering 9%. Furthermore, sales agreements during this period skyrocketed by 11%.
Despite this abundance of activity in the market, Colleen Babcock, an expert in property at Rightmove, issues a word of caution. She explains the immense seller presence is a double-edged sword, with the boost in options potentially making it more challenging for those seeking to sell their homes to stand out.
As more sellers vie for buyers' attention, it becomes vital to employ a competitive asking price, striking home features, meticulous property presentation, or any combination of these factors. Sellers must heed their agents' advice, especially regarding setting a realistic price.
Should You Sell Your Property Right Now?
Current mortgage interest rates and pricing are lower than at the beginning of 2024, which bodes well for buyer demand. Rightmove anticipates approximately 1.15 million transactions this year, with a projected 4% increase in asking prices. Mortgage requests have spiked to unprecedented levels, indicating heightened buyer demand.
However, an air of uncertainty looms over the property market. It remains unclear when interest rates will next plummet, given gilt yields' rise due to concerns surrounding potential tax increases in the UK. This uncertainty could diminish buyer demand if mortgage rates persistently remain high. Furthermore, buyers will be racing to complete transactions before temporary stamp duty threshold increases expire in April. This may encourage purchasers to pay higher prices to secure deals, but sellers may need to make concessions near the end of March to expedite closures.
Babcock stresses that looking at the broader market picture is crucial despite favorable early indicators. Many buyers are grappling with stretched affordability, with high mortgage rates curbing borrowing power and restricting what they can afford to pay. Meanwhile, first-time buyers face a reduction in support schemes and face higher stamp duty costs from April, all while contending with record rents and trying to save for deposits.
This sentiment is echoed among estate agents. Matt Thompson, head of sales at estate agency brand Chestertons, states that January activity mirrored the previous month's pace. High levels of buyer activity are boosted by speculation about potential interest rate cuts, prompting house hunters to kickstart or finalize their searches and secure favorable rates when their contracts are exchanged.
North London estate agent Jeremy Leaf points out that stability reigns supreme when it comes to purchasing a home, inspiring confidence to take on long-term debt and move. Demand remains robust, but concerns linger regarding the pace of interest rate reductions, as well as Budget implications for the jobs market later in the year. As a result, some buyers press pause, especially as an abundance of properties offers more numerous options. However, the urge to move hasn't waned, merely resulted in extended transaction times, according to Leaf.
- In the current housing market, potential buyers are rushing to invest in properties before house prices surge again and stamp duty thresholds change in April, increasing the overall cost of their purchase.
- Rightmove's data suggests that the new year has brought a significant influx of new properties for sale, making it one of the most active housing markets since 2015.
- With more sellers entering the market, presenters and agents emphasize the importance of standing out by offering competitive asking prices, unique property features, and well-presented homes to attract potential buyers.
