Every region of Britain has seen record asking prices for houses break in October, as the national average has jumped by almost £ 5,000.
It was the first time each region has broken asking price records since March 2007, according to Rightmove’s monthly house price index.
The real estate portal said this “packed house” of price increases was an “extremely rare event”.
The typical asking price for a house has jumped across parts of Britain and now stands at a national average of £ 344,445. This is according to the Rightmove Home Price Index
The typical price of a property put on the market jumped 1.8% or £ 5,983 from the previous month, the biggest increase at this time of year since October 2015.
Asking prices are now averaging £ 344,445, up 6.5% from October 2020.
The North West and Wales both saw particularly strong increases in asking prices, amounting to 2.3 percent. They reached £ 232,639 and £ 237,830 respectively.
The South West and London both saw a monthly change of 1.9%, with prices reaching £ 359,906 and £ 650,683.
The number of agreed sales increased by more than 15% compared to the same period in 2019.
Prices have also increased in all sectors of the real estate market. First-time buyers saw asking prices rise 0.8% to £ 210,672, while second-time buyers saw a 1.4% increase to £ 315,486 and those at the top of the scale saw a 1.7% increase to £ 630,819. However, these figures exclude central London.
Rightmove attributed the increase to buyers wanting to secure their new homes ahead of a possible base rate hike, which is expected by some for the end of the year.
If interest rates rise, mortgage rates will rise from their current record lows.
This is already happening in some cases as lenders try to anticipate the rise.
The North West and Wales saw the largest asking price increases. They increased by 2.3% in one month
Highs and lows: price increases requested for the whole of the UK over the past five years
The stamp duty holiday had previously boosted activity and house prices, but it expired at the end of September.
Continuous price increases provide an opportunity for those who are downsizing or do not need to buy another property, to sell until cashed.
Tim Bannister, Director of Property Data at Rightmove, said: “Competition for property for sale remains fierce this fall, with average prices jumping by almost £ 6,000 during the month.
“Although more and more properties are coming onto the market, the level is still not sufficient to replenish the stock that is being recovered.
“As a result, new price records have been set across the board, with every region of Britain and the three first-time, second-tier and upper-tier market sectors reaching historic highs. “
Asking prices have reached new highs for buyers at both ends of the market – and in the middle
The lack of new housing stocks coming onto the market is also pushing up house prices, although Rightmove said the situation was slowly improving.
Its latest weekly snapshot showed the number of new sellers entering the market was down from the same period in 2019, but only 3.2%.
Bannister added: “This ‘packed house’ is an extremely rare event, occurring for the first time since March 2007.
“The stockouts started after the first foreclosure, and they look set to continue, with the underlying housing market fundamentals remaining strong and an added incentive to buy and fix your mortgage interest rate before a widely expected rate hike. “
In these “full house” market conditions, where many homes are bought quickly and sellers have a choice between competing buyers, buyers who have already sold their own property under contract or have nothing to sell are favored.
This has led some to put their own homes on the market before they identify a new property.
Bannister said: “2021 has been the year of the power buyer, with those in the most powerful position to proceed quickly and with the greatest certainty reigning over other buyers who must sell but who are not. still arrived on the market.
“An agent’s analysis that 87% of their agreed sales were bought by buyers who were already able to make is fairly typical of reports from many agents. ”
Despite the hot market, most homes are still selling for below asking price.
According to the latest Halifax Home Price Index, the typical selling price is £ 267,587.
Director of real estate agent Benham and Reeves, Marc von Grundherr, added: “With the market remaining particularly buoyant, those who come in with a property for sale have high prices, which has resulted in further growth in asking prices.
“While initial asking price expectations may be a little too optimistic, to say the least, a lack of inventory to meet demand means homes are selling quickly and at a great price. ”
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