Asking Prices
House asking prices are up 1.3%
The latest data reveals that the average new seller asking price rose by 1.3%, marking the most significant January price rise since 2020.
What's even more striking is that this surge is more than double the 20-year average of +0.6%. Several factors have contributed to this January jump in asking prices.
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Falling mortgage rates - one of the key drivers behind the surge is the decline in mortgage rates.
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Improved economic outlook - as the economic outlook brightens, consumers tend to feel more confident about making significant financial decisions, such as buying a home.
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Increased buyer demand - approximately 42% of agents have reported higher buyer demand than a year ago.
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Surge in listings – there was a 15% increase in the number of properties coming onto the market in the first week of the year compared to the same period last year.
The importance of accurate pricing
While the January jump in asking prices paints a positive picture for both sellers and the overall market, it's crucial that you approach your sale with a realistic mindset. Accurate and realistic pricing remains essential if you’re looking to make a move this year. Overpricing a property can lead to extended time on the market and deter potential buyers.
David Powell, Commercial Director at Andrews said “The market is showing real resilience despite so many external factors. We are experiencing a genuine appetite across our 44-branch network from clients that want to make a move. Evidently more houses are now available on the market so the asking price is key to selling your home in a timely manner”.
Alexandra Tan, Regional Sales Director at Andrews said “When selling a home in 2024, the crucial factor will be setting the right price. Comparatively, the current level of finalised sales is 10% lower than what was observed during the more standard market conditions of 2019. This year has witnessed a notable increase, with 39% of properties experiencing a reduction in their asking price during the marketing phase, as opposed to 29% last year and 34% in 2019. Rightmove suggests that the average duration for sellers to secure a buyer has extended from 45 days at this time last year, to 66 days presently. Sellers who have adopted a competitive pricing strategy have been successful in attracting buyers faster. It is advisable to speak with an estate agent to explore the selling prices of homes in your local area to gain realistic insights. Collaborating with your estate agent to establish a competitive initial price, rather than commencing with a higher price and later needing to make reductions, is key. Research indicates that initiating the sale with the right price maximises the impact on local buyers, significantly enhancing the likelihood of a successful sale for new sellers”.
Find out how much your property is worth using our free instant online valuation or book a free in person valuation appointment with one of our advisors for a detailed conversation.
Sources: Dataloft Poll of Subscribers, Rightmove (January 2024)
