“We predict the annual rate of growth will peak by December at around seven percent higher than a year ago.”
Rightmove has just released the results of the current asking price index research. The average price of property joining the market has increased by 1.1% within the last month- a record high of £323,530. This is 5.5% higher year-over-year.
So what does this mean for consumers? Tim Bannister, Rightmove’s director of property explains:
“Many buyers seem willing to pay record prices for properties that fit their changed post-lockdown needs, though agents are commenting that some owners’ price expectations are now getting too optimistic, and not all properties fit the must-have template that buyers are now seeking.
“Not only is the time left to sell and legally complete before the March 31 stamp duty deadline being eaten away by the calendar, but more time is also needed because the sheer volume of sales is making it take longer for sales that have been agreed to complete the process.
“Sellers and their agents should therefore be wary of being too optimistic on their initial asking price, as whilst activity levels continue to amaze there are some signs of momentum easing off from these unprecedented levels.”
Across the pond, Zillow has done its own data gathering on the current standings of the real estate market across America. Zillow found that the typical home value as of September was $221,860, up 3.6% year-over-year, and 0.6% month over month.
In the rental sector, things are looking around the same, with rent prices up by 1.8% from last year.
The main issue in the US market is inventory not meeting consumer demand. As of the week ending October 10, the number of homes on the market, Zillow found, was down 27.8% year-over-year.
We will continue to see deep dives into the minutia of the industry as the consumers continue to adjust to a pandemic world and what that means for markets everywhere.