Rightmove says optimistic home sellers are raising asking prices

Rightmove revealed that prices of homes for sale increased 0.9 percent in January as optimistic sellers hit the market.

And even though the mortgage crisis has slowed the real estate market, the number of potential buyers contacting agents is up 55 percent compared to the two weeks before Christmas.

The increase is the biggest rebound in the new year since 2016, after an extended drop in activity at the end of last year.

However, total inquiries were down by more than a third (36 percent) compared to the same period last year, according to a report by Rightmove.

In the year through January, home prices rose 6.3 percent.

The average asking price for a house in the UK is now £362,438, up 0.9 per cent from December. It also shows a reversal in the downward trend after house prices fell by 2.1 percent between November and December.

Regionally, house prices in the Southeast rose 0.1 percent over the past month, while they fell 5.2 percent in Scotland.

Year on year Yorkshire and Humberside saw the largest increase in average house price, up 9.5 per cent, while the South West saw the lowest growth at 3.4 per cent.

For first-time buyers, the median house price increased by just 3.9 per cent in the 12 months to January and 0.4 per cent since December, taking the figure to £222,582.

At the top of the housing ladder, the median house price is now £656,322, up 5.2 per cent over the year and 1.3 per cent month over month.

Tim Bannister, director of property science at Rightmove, said the seasonal increase in new seller asking prices in January from December is particularly encouraging for movers looking for reassurance of familiar trends and a calmer, more measured market after the rapid change and in times chaotic economic climate in the past few months. the last of last year.

However, while average asking prices increased in January, they are still £8,720 lower than their peak in October.

It will be important for the vast majority of sellers to remember that the decrease in your asking price is most likely not an actual loss compared to what you paid for it, but simply a failure to live up to aspirations.

“Listening to your real estate agent’s advice about the local super market and pricing right the first time can avoid a stale sale and the need for bigger discounts later.”

There is also good news as monthly mortgage payments for first time buyers have fallen as mortgage rates have continued to ease from their highs in October last year.

The two-year fixed average rate is now 5.63, down from 5.79 on Jan. 1, according to Moneyfacts.

The five-year average fixed interest rate also fell, dropping to 5.43 from 5.63 at the start of the month.

Most experts now expect prices to stabilize somewhere between 4 and 5 percent this year, with many deals now flat below 5 percent despite successive increases in the base rate.

Money’s best mortgage rates calculator can show you what deals you can apply for and what they will cost.

However, data from Nationwide revealed last week that homes for first-time buyers are the least expensive since 2008, with mortgage payments eating up 39 percent of a borrower’s paycheck.

Gareth Overton, Head of Residential Sales at Estate Agent Henry Adam, said: “People are now looking ahead and putting their moving plans into action for the new year.

With mortgage rates beginning to fall and inflation moving under control, we are seeing a rise in demand from those who have taken a long-term view of investing in their next home.

Along with the increases in viewing levels seen so far in 2023, we’re also getting more ratings requests. This bodes well for a reasonably balanced market in the coming months, as supply and demand are more balanced.