Rightmove has reported that new seller asking prices in April 2023 rose by just 0.2% (+£890) this month to £366,247, lower than the average increase of 1.2% for this time of year.
The property data firm said this unseasonal pricing restraint is a sign that many new sellers are taking note of the economic headwinds and the transitioning of the housing market to a slower pace and more normal activity levels, last seen in the pre-pandemic market of 2019.
The number of sales agreed is now on a par with the same period in 2019. Agreed sales volumes are now just 1% behind March 2019.
Tim Bannister Rightmove’s director of property science, said: “Agents are reporting that many sellers have transitioned out of the frenzied multi-bid market mindset of recent years and understand the new need to tempt Spring buyers with a competitive price. The current unexpectedly stable conditions may tempt more sellers to enter the market who had been considering a move in the last few years but had been put off by its frenetic pace.
“Buyers may have struggled to find a home that suited their needs in the stock-constrained market of recent years and will now find more choice available. However, those who have now decided to make a move should not wait around too long to make an enquiry if they see the right home for sale, as not only is the number of sales agreed now back to pre-pandemic levels, but homes are also on average selling 12 days more quickly than at this time in 2019.”
Conor Murphy, CEO and founder, Smartr365 and Capricorn Financial Consultancy, added: “Though UK house prices have seen a correction, valuations are still largely above pre-pandemic levels thanks to enduring strong demand from both domestic and international buyers. Nonetheless, many first-time buyers will be encouraged by today’s news, which suggests prices are becoming more affordable, and considering whether now is the right time to snap up a bargain starter home.
“With many prospective buyers encouraged by this latest price correction, it is especially important that mortgage brokers provide a transparent, efficient, and digital-led mortgage journey. Streamlining admin, lead flow, and product sourcing through mortgage technology tools will be vital to those looking to help as many customers as possible during this busy period. At the same time, these tools also provide a more transparent and efficient journey for the borrower, improving customer satisfaction and retention.”