The latest insights from Rightmove show that it was the busiest May for agreed property sales since 2021, and the busiest out of any month since March 2022.
May is typically a busy month in the year for agreed sales, but this year’s figure highlights the improved market conditions, following the stamp duty increase.
Across Great Britain, the number of sales agreed is now 6% ahead of the same period last year, however the figure is much higher in some areas than others.
For example in Wales, the number of sales agreed is 15% higher than at this time last year, compared with London where the figure is just 1% higher.
May’s hotspot is Heywood in Manchester, with the number of buyers agreeing a deal to purchase a home there nearly double (+88%) the level of this time last year. Second on the list of hotspots is Pudsey in West Yorkshire (+85%) and third on the list is Wilmslow in Cheshire (+66%).
Nine out of the top 10 sales hotspots outside of London in May have an average price tag below the national average, indicating affordability and value are influencing sales trends
A Rightmove statement says: “Due to the seasonality of the property market, May is typically a busy point in the calendar year for agreed sales as a result of new seller and buyer activity from earlier in the year. However, this year’s figure reflects an improvement in housing market conditions. The average five-year fixed mortgage rate is now 4.61%, compared with 6.11% at the peak in July 2023.
“It appears that affordability and value are influencing sales trends based on May’s hotspots. While mortgage rates have come down significantly from the peak, they are only slightly down from this time last year. Nine out of the top 10 sales hotspots in May have an average price tag below the current national average.”
Colleen Babcock, property expert at Rightmove, comments:“With mortgage rates higher than the lows we saw post financial crisis, and affordability stretched, many buyers are continuing to look for value, which is likely reflected in the lower than average prices of some of the current hotspots. With the overall number of sellers continuing to run at a decade-high, sellers need to also be mindful of the competition they might face from other sellers trying to secure a buyer in their area.
“Working with a local agent to price realistically and competitively for that market, rather than pricing too high, is one way to increase the likelihood of a successful sale.”
This article is taken from Landlord Today