All you need to know about the recent housing market...
Average house prices hit a record high in June, which may come as a surprise. According to Rightmove, asking prices hit a record for a fifth consecutive month, rising by 0.3% – or £1,113 – to reach an average of £368,614. However, this was the smallest monthly increase since January, with the site saying: “The exceptional pace of the market is easing a little.”
What’s happening with buyer demand? Is it still strong?
According to Rightmove, buyer demand for each available property is down by 8% in May compared to April, but remains 6% higher than last year, and more than double (+113%) the pre-pandemic five-year May average. The housing market frenzy and increased demand from buyers earlier in the year was partly caused by the lack of available properties. Many newly listed homes were snapped up within a week or two.
Will rising interest rates cause house prices to fall?
It’s difficult to tell. The increase in house prices very much depends upon the supply and demand of property. With the supply of available property still so low – and properties in short supply, the increased buyer demand ensures prices remain high. If, however, household finances are continually squeezed then experts suggest that house price increases may slow down by the end of the year.