Biggest monthly jump in house prices in over 20 years as buyers get FOMO

Sellers can still rejoice as house prices continue to impress as we fast approach the end of Q1 2022, with various housing reports singing the property market’s praises. 

Rightmove’s latest House Price Index has noted that the average asking price of homes has increased by £7,785 to a record £348,804 – the biggest monthly jump in more than 20 years, and 9.5% higher than a year ago. This great achievement means that the average asking price has risen by nearly £40,000 since the pandemic began, compared to just over £9,000 in the two years prior to 2020. For the East Midlands where we operate, the good news continues, seeing the biggest annual increase across all UK regions, up 13.3%, with the average home taking just 40 days to sell.

Meanwhile, Nationwide’s House Price Index, found the average annual house price rose for the seventh consecutive month by 12.6% in February – up from 11.2% the month before. They also noted that the UK has seen the largest ever annual increase in cash terms since their housing report first launched in 1991, with a typical home now worth 20% more than in February 2020, with the average price increasing £29,000 over the last year alone.

What does this mean for sellers now in Rutland, Stamford & South Lincs?

With Spring well on its way, we are still expecting the traditional high levels of activity over the next few weeks that we would usually see, as it’s the time of year when country house buyers want to sell as their gardens are looking lovely. However, this year it’s going to be even busier!

The imbalance between demand and supply is still continuing, causing a fear of missing out (FOMO) with buyers. This is what is supporting the impressive price rises everybody is seeing, especially from those who are downsizing or second steppers seeking more space where they can part commute part work from home. For example, two houses we were instructed on last week both sold over the asking price before we even had a chance to send our professional photographer in! It took just a couple of phone calls to our registered list of buyers to arrange the viewings and secure the sale. 

We are also seeing an uptick in new instructions. This is being driven mainly by downsizers who own the big lovely country garden homes which tend to come to market in Spring. This age group have also been trapped in their homes over the last two years, but now feel safe having people walk around their properties again. These sellers are also buyers, and they have realised the benefits of selling their home (subject to contract) whilst trying to purchase themselves, as those that don’t tend to be the one’s who are missing out. People want buyers who are proceedable now, and this is absolutely key for anybody looking for a country house at the moment. 

Find Out More

For more advice about selling in the Spring market, and the benefits of doing so, contact Jan or Ildi at Fine & Country on 01780 750 200 or e-mail: stamford@fineandcountry.com. You can also visit our website here.

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