The previous peak achieved at this time of year was set in 2008, just six months before the collapse of Lehman Brothers in September of that year. This new March record comes at a time when several of Rightmove’s indicators provide evidence of growing momentum in the market that should deliver an increase in transaction numbers this year.
In spite of a 12% month-on-month increase in new seller numbers, unsold stock per estate agency branch has remained little changed, up from 64 properties last month to 65 this.
This suggests an increase in the number of properties being sold and removed from active marketing. This bodes well for transaction numbers in 2013. With March’s average time on the market also falling from 90 days last year to 80 days this, property appears to be finding buyers more quickly.
Miles Shipside, Rightmove director and housing market analyst comments:
“In today’s turbulent world where economic crises seem more likely to re-appear than disappear, any market upturn will take longer to build home-mover confidence to the point that it starts to feed through to actual transactions.
Even those who truly believe that the market has turned a corner may be unable to do anything about it due to lenders’ cautious risk profiling, a significant factor limiting the speed and strength of the recovery. However, with new sellers asking more than ever before as we enter the traditionally busy spring market and an expectation among home-movers of price stability or growth, there is now a bedrock upon which confidence and momentum appear to be building.”
Shipside adds, in response to the transaction figures:
“Whilst it is too early in the year to make estimates about full year transaction volumes, agents are reporting more properties being sold subject to contract. However, these prospective buyers still have to complete the potentially treacherous journey through to successful completion.
A sense of urgency has previously been sadly lacking, but there’s nothing like a few “Sold” boards appearing on local streets to motivate buyers to make a decision about which they had previously been prevaricating.
More limited inventory for sale by agents means less choice for buyers and is usually a forerunner of increased property prices. Some of the price gains made in the first half of the year often fall away in the second half, but this year it is possible that the air of optimism will result in those gains being retained."
Ben Thompson, MD Legal & General Mortgage Club reacts to the latest Rightmove monthly house price index:
“Positivity around the UK housing market is starting to slowly but surely gain momentum. All the signs seem to be that we are starting to move towards a return to ‘normality’ in house prices by 2017 and although we have along path to tread we are on the way down it. The upward trend outlined by Rightmove is yet another indicator that this positivity is not misplaced. The hope is that the Chancellor will recognise the importance of the housing market to the economy in his Budget. Whether via mortgage innovation, mortgage insurance, a change in stamp duty rules or a combination of all three it’s crucial that Mr Osborne gives the recovery the support it needs to take root and grow.”
