Property prices have been increasing throughout April, thanks to a seller shortage. RightMove's House Price Index posted a fourth consecutive quarter of price rises, with new seller asking prices up by 2.1 per cent (GBP 4,996). This takes the average asking price to GBP 244,706 per month - the highest ever April figure recorded.
Property coming to the market is now up by 6.9 per cent (GBP 15,717) so far this year. This is the second highest national figure ever recorded and within GBP 1,529 of the all-time high. According to RightMove, this upward price pressure is the result of increased optimism and a shortage of sellers. The number of newly marketed properties in April is down four per cent compared to the same period last year.
While there has been a 12 per cent rise in the number of new sellers, numbers of unsold stock remain little changed. This indicates a rise in sales. Quicker sale times have also been noted, with the average time a property stands on the market recorded at 80 days, compared to 90 days this time last year.
However, there has been a shock in the market - London has seen no change in values. After months of astronomical price increases, this lack of growth in the capital is no doubt unexpected. Nevertheless, RightMove claims this isn't a cause for concern and stresses it must be put in a context of 12 months of London outpacing the rest of the country.
Miles Shipside, director and housing market analyst at Rightmove commented: "With London prices pausing for breath this month but likely to bounce back next, May looks like an odds-on bet to deliver a new asking price record. This should not be confused with an overall market recovery, as while spring may be here the ongoing chill of the recession is still in the air. However, it is true to say that more estate agents are reporting more activity in more segments of the market."
Is this good or bad news? Read more about average house prices
- Monday 22 April 2013