Sellers looking to sell their home before Christmas should hire an agent now as the average time between listing and completing properties is a whopping seven months, Rightmove’d House Price Index reveals today.
Average prices for properties coming onto the market for sale hit a record £375,131, increasing by 0.8% (+£2,807), driven primarily by the prime sector, which saw average prices rise by £1 compared to last year .3% rose.
The number of sales agreed in the first four months of the year is 17% higher than last year, outpacing the 12% increase in the number of new sellers entering the market.
But despite a rise in asking prices due to pent-up demand and a strong spring selling season, it still takes over seven months from a seller’s on-market date to the completion of their move, meaning potential sellers looking to celebrate Christmas in a new home must do this come onto the market now.
MPs are currently examining the slow completion process in England and Wales as part of their inquiry into improving the home buying and selling process.
SEAMLESS PROCESS
Creating a smoother process, which includes providing potential buyers with more accurate information about a home earlier and better connecting the parties involved in the transaction process through technology, are two areas where Rightmove believes it would be most beneficial to moving companies.
Tim railingDirector of Property Science at Rightmove, said: “The momentum of the spring selling season has put enough upward pressure on prices to reach a new record price.”
But he adds: “The extremely lengthy legal closing process is a frustrating barrier to moving companies converting agreed sales into completed transactions more quickly.”
“It may seem surreal to think about Christmas in May, but we know that many potential sellers imagine celebrating the holidays in a new home and to achieve this, now is the time to hit the market come.”
Dan SalmonManaging director, Coadjute, says: “Although long completion times have been a fact of life for years, it still remains a pain for movers and we see it as something that technology can and will solve.”
He adds: “At the core, the delays are due to communication problems and the difficulty of obtaining accurate data quickly and securely. There is certainly still a lot of work to be done and while there is no silver bullet, we hope to finally see some dramatic improvements in this time.”
INDUSTRY RESPONSE
Nick Leeming, chairman of Jackson-Stops, said: “The message here is that lifestyle changes and supply are still the dominant market forces for most, anchoring house prices for the foreseeable future to provide much-needed stability and security.”
“The more positive macroeconomic outlook in recent weeks has even led some to revise property price forecasts upward for the year, from decline to growth; Consumer confidence likely to impact a busy summer.”
These current figures could be ideal inspiration for sellers to use this as an opportunity to put their property on the market.”
Nathan Emerson, managing director of Propertymark, added: “Spring, which turns into summer, is traditionally a busy time for the property market and these latest figures could prove ideal inspiration for sellers to use this as an opportunity to list their property to bring it to market.”
“Buyers and sellers are adjusting to current levels of inflation and higher interest rates. However, the more these two factors weaken, the more likely it is that the growth of the real estate market will be further stimulated.”
“With housing supply still a key issue and the general election just around the corner, we hope that all political parties will focus on increasing the number of homes in the medium to long term.”
And Matt Thompson, sales director at Chestertons, says: “As more lenders cut mortgage rates, buyers are feeling slightly more confident about their financing options.”
“We expect this market shift to boost buyer demand this summer – particularly in London, where buyer volume still exceeds the number of properties available.”