An update on home asking prices: spring 2023

Spring is notorious for being one of the busiest months for home-movers. In fact, historic data has revealed that more people begin their property search and more properties are listed at this time of the year. If you’re one of those people, and your mind has wandered to moving home, you might be worried about the recent hike in asking prices. Here, we look back at some of the recent information available to provide you with an update. 

The February House Price Index

With spring typically being a very busy time of year for the property market, we usually see rising average prices as buyers price their properties for a competitive market. However, the latest Rightmove House Price Index has revealed that prices have stagnated during February. 

The index, which offers the most recent data on asking prices in the UK, allows us to get a clearer picture of exactly what’s happening in the market. In February, homeowners didn’t increase their prices by much and the average house price only rose by £14. Although it’s only a small increase, and the smallest on record for January to February, some property experts are viewing it as a positive sign of things to come. 

The reason behind it… 

There’s lots of speculation about why house prices have appeared to remain steady. One of the most common being that over the past two years, demand was so high because there was an influx of people looking to move and house prices reflected this. As the market begins to settle, so will house prices. 

A slower market also offers homebuyers the chance to sit back and assess their situation as well as any properties that they do visit. Buyers can now take longer to find their dream home and that’s why a realistic asking price is required from sellers to help them to find the right buyer quickly. 

Of course, rising interest rates and mortgages have also meant that some people can’t afford to move, meaning there is less demand in some areas, and this naturally has an impact on house prices. Mortgage rates have begun to drop, however. 

What does the future hold for home asking prices?

The statistics don’t lie. Potential buyer enquiries rose by 11% in the last two weeks of February and average mortgage rates are also falling. First-time buyers are getting back into the market and although some movers may have been priced out, there are still options available. Above all, we’re seeing more buyers with more choice and confidence – despite many having had to revise their budgets. But, if the property market keeps making these small steps forward, things will be on the up.

Don’t forget if you’re looking to buy, sell, let or rent, the team at Kaytons is always here to help. Plus, if you have any questions about the property market, we’re only a message away.

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