More listings and inflation woe signal house price growth slowdown – Zoopla
A new housing market snapshot from Zoopla suggests that in the supply of homes coming to the market has triggered a slowdown in house price growth after a remarkable period of increases.
The portal says the increase in homes come on sale early this year has actually been five per cent about the five year average for new listings, prompting house price growth to slow to 7.8 per cent – slightly below the 8.0 per cent a month ago.
However, Zoopla insists the market is highly localised with performance varying from the UK’s highest increase – an annual rises of 16.6 per cent at Powys in Wales – to price falls, with a decline of 2.2 per cent spotted in the City of London.
But demand is still aggressive and while Zoopla admits that new listings have risen for every property type in the first two months of the year compared to 2021 – and especially for three and four bed detached family homes – no fewer than half of all homes listed for sale are being snapped up within three weeks of coming to market.
This contrasts with a third of properties finding buyers that quickly at this time last year.
The port says the average house price across the UK is now priced at £244,100, a rise of around £80,000 over the last decade.
Grainne Gilmore, head of research at Zoopla, comments:
“The sheer level of activity in the market in recent years eroded the stock of homes for sale.
“But the data indicates that more homes are now coming to the market, as movers and other owners list their properties for sale – and this will create more choice for the many buyers active in the market. However the imbalance between high demand and supply will take much longer to unwind, and this imbalance will continue to underpin pricing in the coming year.”
The portal says that last year some 1.5m home sales were secured, even as stock levels declined, as willing sellers and buyers were able to agree purchases.
The market moves more smoothly when there is choice for buyers, so Zoopla believes the rebuilding of pipelines is positive as movers are more willing to list homes when they can find a property to move to.
Changing sentiment in the market as a result of the evolving economic conditions, however, would cause another slowdown in listings as potential movers, sellers, adopt a ‘wait and see’ approach. But in the face of such high demand, including from first-time buyers who do not need to sell, there will still be the opportunity to secure transactions.
The portal’s market snapshot concludes:
“This year, rising economic headwinds, including the increasing cost of living and rising mortgage rates will start to put the brakes on house price growth.
“The global uncertainty and volatility resulting from the invasion of Ukraine, will have economic impacts around the world including the UK. We continue to expect 1.2m home sales this year, down from 1.5m in 2021 and that average house price growth will be at 3.5 per cent at the end of the year.”
Kindly shared by Estate Agent Today
Main photo courtesy of Pixabay
