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5 reasons why asking prices keep rising 💹 Can this super-charged activity go on forever?! 🔮

For the third consecutive month, the national average has been pushed to a record high of £336,073 - seems weird seeing as we're in a global pandemic!

So, why are the prices so high? Rightmove explains:

1️⃣ Demand wayyyyyyy outstripping supply

➡ A record number of people are looking to move 🥇
➡ More than 180,000 new properties have been listed on Rightmove since 1st May 2021, but it’s still not enough to meet demand! 🤔
➡ Homes are selling faster than ever before, and not only that, a record number are being sold at or above asking price 🤝
➡ Homes with outdoor spaces in high demand, with many buyers now working remotely and commuting less 💻

2️⃣ Stamp Duty savings

➡ The Stamp Duty holiday has helped many to afford higher prices 💰
➡ The temporary reduction of the tax has invigorated the market, many buyers racing to move before the 30th September deadline ☠
➡ You can find out more about the Stamp Duty changes here: https://lnkd.in/dCbZdcS 📩

3️⃣ Ultra-low interest rates

➡ Ultra-low interest rates have also helped more people to get on the property ladder, or to upsize to bigger and more expensive homes 📈

4️⃣ 95% mortgages

➡ Government-backed Mortgage Guarantee Scheme launched a few months ago in March, offering buyers with small deposits access to 95% mortgage loans 💳
➡ Read all about MGS here: https://lnkd.in/ddQfqzT 📩

5️⃣ Swift vaccine roll-out 💉

➡ 1st dose = 38,624,143
➡ 2nd dose = 29,429,018
➡ Total = 68,053,161

🙋‍♀️ What’s the market forecast for the rest of the year?

➡ A very early indication of the future is the number of people enquiries to estate agents 📞
➡ Currently, this is up almost 40% on the same period in 2019! 📊
➡ However, there are early signs of the market cooling ❄
➡ Number of sales agreed is still growing, but available properties are in short supply 🏡
➡ If unemployment rises at the end of the Furlough Scheme (30th September) - there is scope for activity to slow sharply 🛑

💬 Timothy Bannister of Rightmove: "Higher prices combined with a lack of homes are reducing some buyers’ ability or desire to move. This super-charged activity cannot go on forever, but we expect the market to remain vigorous for at least the remainder of the year.”

🙋‍♂️ How much is your property worth? Contact our EXPERT TEAM today 🦹‍♀️🦸‍♂️

#cavendishexperts #sdltholiday #sdltcalculator #propertynews #estateagents #houseexpert #housingmarket2021 Rishi Sunak #houseprices #houseexpert #houseforsale #housingmarket #property #mortgage #homeowners #mortgages #realestate

Posted 15 July 2021
by Ali Baylav Managing Director Cavendish Residential

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