As the days grow longer and the weather warms up, the housing market is experiencing its busiest season of the year. This period is marked by a surge in activity as many individuals kick-start their plans to move. During this time, new sellers often seize the opportunity to list their properties, knowing they may attract more potential buyers. It's not uncommon to see asking prices rise by around 1% at this time of year. However, the current market conditions have surpassed expectations, with prices increasing by almost double that rate in May.

The average asking price for a home in the UK has soared by 1.8%, marking a significant jump and pushing prices to a record high of £372,894. This larger-than-usual monthly increase follows extensive speculation about the housing market's trajectory for the year. Towards the end of 2022 and the start of 2023, some individuals put their moving plans on hold due to uncertainty surrounding mortgage rates and broader economic changes, including adjustments to the Bank of England's Base Rate. To evaluate the impact on house prices, it's helpful to explore the current UK mortgage rates and their implications for monthly repayments.

Despite the initial caution, demand from potential homebuyers has continued to surpass pre-pandemic levels. In fact, there has been a 3% increase in the number of people enquiring about viewing properties for sale. This sustained demand is encouraging and bodes well for the overall resilience of the housing market.

Tim Bannister, from Rightmove, suggests that the considerable jump in new seller asking prices indicates increasing confidence amongst sellers. Typically, such a significant monthly increase would occur earlier in the spring season. Bannister adds, "One reason for this increased confidence may be that the gloomy start-of-the-year predictions for the housing market are looking increasingly unlikely." This shift in sentiment reflects a market that is transitioning towards a more normal level of activity following the exceptional surge in home-moving activity during the pandemic years.

Understanding the local housing market is vital in grasping the broader trends. By analysing this data, we can identify changes occurring not only on a national scale but also at a more local level such as Leicester.

If you're considering selling your home, rest assured that we are currently operating in a steadier housing market compared to recent years. To maximise your chances of a successful sale, it is essential to price your home accurately from the outset, avoiding the need for price reductions later on. Properties that are priced in line with the current market trends tend to generate more interest from prospective buyers. Maintaining a realistic pricing strategy is crucial to achieving a swift and satisfactory sale. Our dedicated sales team at Seths will guide you through every step of the process.

“The market is still very price-sensitive, and it is important that new sellers do not damage their prospects of a sale by overpricing initially and reducing later," advises Bannister. He further notes that agents have reported the best-selling results for properties that are priced realistically from the start.

For first-time buyers, the current market presents favourable conditions. Fixed-rate mortgages have shown signs of stabilisation in recent weeks, providing a more predictable environment for buyers. In fact, demand for first-time buyer-type homes has surged by an impressive 6% when compared to the same period in 2019.

If you're embarking on your journey to home ownership and require guidance, our team at Seths are here to help you through the entire process from start to finish.