Sellers – why do house prices keep soaring?

Sellers may be pleased to know that house prices are continuing to rocket, meaning those looking to sell their properties now could end up getting considerably more than they anticipated.

Rightmove reported that January was the busiest-ever start to a new year for the property market and the prosperous market has continued as March heads to a close.

In this blog, we at Expose Property take a deep dive into why house prices continue to rise and why sellers still need to act fast in the midst of this property boom.

Why are house prices rising?

According to Rightmove, February saw the biggest house price increase on January in more than 20 years. The property platform said the average price of homes coming to market in Britain rose by £7,785, leaping to a record high of £348,804.

This huge jump means that average asking prices have now increased by nearly £40,000 in the two years since the pandemic started, in comparison to just over £9,000 in the previous two years.

In particular, London, where we cover, has experienced the highest annual rate of price growth since 2016. London’s high house prices can be attributed to Covid restrictions ending and people returning to work in the capital again. The average asking price of a house in London has now reached £667,001.

Covid isn’t only driving up house prices in the capital, it could also be a factor for the rest of the country. Rightmove believe February’s price growth was driven by people reconsidering where they want to live after years of lockdown restrictions and sellers wanting to move from their first homes for more spacious properties.

High buyer demand and a shortage of properties also culminate in a perfect storm for high house prices. There are many sellers who are eager to put their houses on the market, so they can move quickly and increase their chances of securing a new house.

Tim Bannister, director of property data at Rightmove, explains: “A fear of missing out on one’s dream home is really driving market behaviour at the moment, as movers look to do all that they can to avoid the disappointment of being too slow to secure their ideal property.”

Should sellers sell now?

With the market in such good health, it’s easy to understand why sellers would get complacent. Although it’s currently a seller’s market with demand outweighing supply, it is predicted that the market could begin to cool off. According to Rightmove, there are more property listings coming to the market compared to a year ago, which can give buyers more of a choice.

March is when buyer demand is at its highest and when the spring surge starts in earnest. Rightmove cited this spring as the best time to sell, with house prices hitting a new record. But with rising interest rates and a cost-of-living squeeze, this could potentially affect the housing market.

So, sellers are advised to strike while the iron is hot and put their property on the market now. Spring sellers looking for inspiration on how to market their property this season, should read our property staging blog and seasonal photos article. The milder weather, increased sunshine and current market conditions make now an opportune time for sellers.

Here at Expose Property, we can help you to sell your property, using our experience of selling homes in Beckenham, Penge, Crystal Palace and other places in South East London.

You can also get an idea of how much your home is worth by using our free instant online valuation tool here.