House Price Index - April 2022

Monopoly Houses on Pound Coins

Third consecutive price record & homes selling faster than ever in spring market frenzy

The price of property coming to market has hit a new record high for the third consecutive month.

Month-on-month prices have risen by an average of 1.6% (+£5,537), and over the last three months by £19,082. This figure is the largest three-month price increase that Rightmove has ever recorded, with high buyer demand enabling sellers to ask and achieve ever higher prices. With not enough property available on the market, sellers are able to find a buyer quicker than ever previously seen by Rightmove, and twice as quickly as in the same period in the more normal market of 2019. This momentum is despite the growing economic headwinds, though we forecast that these headwinds will slow the pace of price rises as the year progresses.

Across Great Britain, and in all of Rightmove’s lower, middle, and upper market sectors, properties are at new record price levels. This is only the second time since 2007 that Rightmove has measured such an event, with the previous ‘full house’ being earlier in this property frenzy in October of last year. The frenetic activity continues, with this month seeing properties selling faster than ever previously recorded by Rightmove. This time in 2019, the average time to sell was 67 days. It now stands at an average of just 33 days before a property is marked as sold subject to contract on Rightmove. Of course, this is an average, and some popular properties are sold within days while others that are less desirable may still take months.

This fastest-ever speed of sale means that 53% of properties that sell are now selling at or over their final advertised asking price, the highest percentage we have ever measured. Overall, our analysis shows that properties are achieving 98.9% of the final advertised asking price on average, which is also the highest percentage since our records began. However, the pace of price rises does now appear to be tailing off a little, with this month’s increase of 1.6% being lower than the 1.7% and 2.3% in the previous two months. Whilst it is normal to see modest seasonal price falls in several months of the second half of the year, with stock remaining at record lows and underlying strong demand, we do not expect these falls to be any more significant than usual this year.

Summary:

  • The price of property coming to market hits a new record high for the third consecutive month, up by 1.6% (+£5,537) to £360,101
  • Despite growing economic headwinds, the 2022 market continues to set new milestones for price and activity levels:
    • All regions and all market sectors reach new record price highs, for only the second time since 2007
    • Properties selling faster than ever, twice as quickly as in the more normal market of 2019
    • Last three months’ price jump of over £19,000 is largest seen in any three-month period since records began
    • 53% of properties are selling at or over the full asking price, again the highest level ever seen
  • The pace of price rises this year appears to be tailing off slightly as affordability constraints and economic headwinds combine:
    • High buyer demand for limited stock for sale suggests that while price growth may slow down, sustained price falls are unlikely
    • Number of transactions remains steady, with sales agreed 21% higher than the more normal 2019 market
Walton Robinson
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