Property prices in the market have hit an all-time high for the third consecutive month, marking a remarkable trend in the real estate sector.
Prices have seen a month-on-month increase of 1.6% (+£5,537), totaling an astonishing £19,082 surge over the past three months. This notable three-month price increase is the largest ever recorded by Rightmove, a testament to the robust buyer demand that empowers sellers to command higher prices. The scarcity of available properties in the market has contributed to a significant reduction in the time it takes to find buyers, surpassing previous records set by Rightmove and even outpacing the 2019 market by twice the speed.
Despite facing economic headwinds, the market continues to surge, and experts predict that the pace of price rises may slow down later in the year due to these prevailing factors. However, the momentum remains strong, and all market sectors, including lower, middle, and upper segments, have achieved new record price levels across Great Britain. This occurrence is only the second time since 2007 that Rightmove has reported such an event, the first being during the property frenzy in October of the previous year.
An interesting observation in the market frenzy is the unprecedented speed at which properties are selling. Compared to the average 67 days it took to sell a property in 2019, the current average stands at a remarkable 33 days before a property is marked as "sold subject to contract" on Rightmove. It's important to note that this is an average figure, as certain highly sought-after properties may be sold within days, while less desirable ones could still take several months.
The swift pace of sales has led to an impressive statistic: 53% of properties that are sold are now achieving the full asking price or more, the highest percentage ever recorded. On average, properties are achieving 98.9% of their final advertised asking price, which is also the highest percentage since Rightmove began keeping records.
Despite this market fervor, signs of a slight slowdown in price rises have appeared recently. The 1.6% increase this month is lower than the previous two months, which experienced increases of 1.7% and 2.3%, respectively. It is normal to observe modest seasonal price declines in the latter half of the year, but with low stock levels and a strong underlying demand, the decline is not expected to be significantly more substantial than usual this year.
In conclusion, the current property market is experiencing unprecedented price records and sales velocity, driven by high demand and limited supply. While the pace of price growth may moderate, sustained price falls are not expected due to the steady number of transactions and strong buyer interest, despite existing economic challenges.