For the first time since July, asking prices for homes on the market have risen, driven by declining mortgage rates and growing market confidence.
Rightmove reports that the average price of newly listed properties this month is 0.1% higher than it was a year ago, indicating the first year-on-year increase since the previous summer.
Since December, average prices have climbed by 0.9%. With the typical new listing now at £362,839, this represents a rise of over £3,000 in the average asking price since Christmas.
There’s a growing sense of optimism as mortgage rates fall back from last year’s peaks, coupled with expectations that interest rates might begin to decrease soon.
Currently, the average two-year fixed-rate mortgage is offered at an interest rate of 5.56%, down from 6.85% in August, as per Moneyfacts data.
Likewise, the average rate for a five-year mortgage deal has decreased to 5.18%, a drop from 6.37% last summer.
Tim Bannister, Rightmove’s director of property science, advises: “For sellers genuinely intent on moving this year, it’s wise to capitalize on this surge in buyer confidence with a compelling asking price, before any pre-election uncertainties or unforeseen events potentially slow the momentum.”
