May's House Price Index: property prices are on the rise

Brace yourselves for some exciting news: Rightmove’s May House Price Index indicates that property prices are on the rise, reaching an all-time high of £372,894. That's right, the average price of properties coming to the market has surged by 1.8% this month, signalling a delayed but strong response to the heightened market activity since the beginning of the year.

This substantial monthly increase is the largest we've seen so far this year, surpassing the historic average May rise of 1.0%. It's like the market has decided to kick things up a notch and deliver a real boost of adrenaline to all those involved.

While there's increased confidence in the lower and middle segments of the market, there's also a hint of caution in the higher-end properties. Potential buyers seem to be holding back slightly, resulting in slightly lower demand for those top-tier properties compared to the pre-pandemic year of 2019. Here's the exciting part: demand for first time-buyer and second-stepper properties is 6% higher! It looks like the younger generation is ready to take the leap into homeownership.

The Index shows that properties are taking longer to sell compared to last year. The largest homes are lingering on the market for an average of 67 days, nearly double the time it took just a year ago. Second-stepper properties now take an average of 52 days to find a buyer, compared to 28 days last year, and first-time-buyer properties are taking 53 days, up from 35 days a year ago. The increase in sales time means that it’s more important than ever to use a pro-active agent.

Now, for some good news for buyers: mortgage rates have remained steady despite an increase in the Bank of England's base rate. An average 5-year fixed mortgage with a 15% deposit now stands at 4.56%, down from 5.89% last October and up only slightly from 4.52% earlier in May. So, amidst all the market excitement, you can have a clearer understanding and better plan your mortgage costs. It's time to seize the opportunity!

For sellers, here's the scoop: homes in popular residential areas are selling fast. This means you can take advantage of the increased pricing confidence and favourable selling conditions in the current housing market. Just remember to set realistic prices from the start, as having to reduce your price later can harm your chances of making a successful sale.

If you need guidance on navigating the current market, we're here to help. Contact your local Redbrik office today, and let's make the most of the current housing market together.