We are now in the middle of the “selling season”. This is the point where buyers usually see a steady flow of stock coming to the market.
Not this year though. Stock was 18% lower in April than November last year according to Rightmove’s most recent report and Zoopla reported stock down by 28% in April, based on historic averages.
This trend is self-perpetuating, as sellers hold their own sales back due to the lack of homes for them to buy. Whilst values are growing so fast people have an inherent fear of being left behind and seem reluctant to rent once sold.
House prices in the UK grew by 10.2% year on year to March this year (Land Registry), with the highest monthly growth seen for 5 years. On a local level though, we have seen monthly growth slow in North Yorkshire since December which we are monitoring.
Ben Pridden, Agency Director comments on the Prime Market, “The potent combination of low levels of stock, high demand and low interest rates is driving the market. Locally this is magnified by a feeling of positivity around the current UK Covid situation, combined with a flight for a new rural life. I expect this market is sustainable for the short term. However experience dictates this will not last forever, and it is vital agents and sellers don’t get carried away when pricing homes. I believe values will plateau soon so if you are thinking of marketing your home I would take advantage of the current climate and get on.”