If you are remotely thinking about moving home over the past year or more, you will have noticed that property prices continue to rise. Damning if you are trying to get on the property ladder. We expect them to rise, but the rate has stunned many. But why is this? Why are house prices rising so much?
The Extent Of The Rise
The property market had its busiest start to a new year ever in January, and February was even busier, with a large number of people eager to relocate as spring approaches.
Normally, asking prices grow from January to February, but this month has witnessed the largest increase in almost 20 years. The average price of new homes on the market in the United Kingdom has increased by £7,785, reaching a new high of £348,804.
This new high signifies a roughly £40,000 increase in average asking prices in the two years after the pandemic began, compared to just over £9,000 in the preceding two years, with London witnessing the largest increase.
Why Are House Prices Rising?
After years of Covid limitations, many people are still rethinking their priorities and where they wish to live. Sellers who are ready to move on from their first houses in search of more space are driving price growth this month.
Buyer demand is still high, but there are still a limited number of houses available, making it a competitive market. Many house-movers are hurrying to place their properties on the market in order to ensure that they may move fast and get their next property.
Fear of missing out on a home is driving market activity right now, as buyers try to do everything they can to avoid the disappointment of missing out on their dream home.
Will They Keep Rising?
The good news is that we are beginning to see signs of the pressure reducing. In comparison to a year ago, there are more new property listings on the market, providing purchasers additional options.
As we transition from a busy spring season to a more conventional summer housing market, this should assist to slow the rate of price growth.
Why Are House Prices Rising? – What This Means For You
According to research, March is the busiest month for home sellers and the best month of the year to list your home. This implies that buyer rivalry is at its peak in March, giving would-be sellers the best chance of selling their house fast and for a good price.
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