March’s House Price Index shows further moves towards normality

This week’s House Price Index from Rightmove shows a small increase in the average price of property coming to market (up 0.8% or £2,906 nationally on February), with particular strength in the first-time buyer end of the market.

Average asking prices for first stepper properties are just £500 lower than 2022’s record, put down to reports that many buyers in this group are spending and saving wisely to avoid record-high rental prices. Rightmove also suggests this group may well have lived in their family homes longer, particularly during the pandemic, and many are receiving financial support from their parents to buy.

More locally to Redbrik, Yorkshire has seen a monthly change 0.6% and an annual increase of 4.5% - one of the strongest in the country.

Mark Ross, Managing Director at Redbrik, says, “It’s great to see these market conditions continue to normalise. All the figures in this month’s Index point towards buyers and sellers enjoying more time and thought going into their home move and potentially getting more for their money.”

What does this mean for sellers?

Sellers of properties suitable for first-time buyers should strategise with their agent over the coming months to make the most of buyer demand. This end of the market is now most closely aligned with the market of 2019, where healthy buying and selling was taking place, so sellers can expect a good price for their homes.

However, larger, top-of-the-ladder homes are not seeing as much demand. If you have a property of this type to sell, speak with your agents about what you can do to make it as attractive as possible to the buyers that are out there. As many look to downsize or ‘right-size’ in the context of high energy bills, other factors come into play to sway a buyer’s preference. It is also worth noting the percentage of buyers relocating to new regions has reduced considerably, as moving for pandemic-driven lifestyle changes lessens. So selling with an agent with expertise and a reliable network in your local area is going to be key to finding a buyer.

What does this mean for buyers?

First-time buyers should be well-equipped to make themselves the most attractive buyer if they are looking to secure a purchase. This means getting your finances ready to offer and ensuring you are clued up on the process you are about to embark on. Particularly as mortgage rates fall back further, now averaging 4.65% for a 15% deposit five-year fix, it is crucial you have considered your buying strategy before offering. 

Buyers of larger, top-of-the-ladder homes may get more for their money in the coming months, as the majority of the market downsizes. So while energy price concerns may be on your agenda, take this time to carefully consider the size of the property you could afford now compared to other market conditions.

If you have a move to make,  contact your local Redbrik office for bespoke, expert advice.