Good news for investors around the UK - property is now selling at or above asking prices in greater proportions than at any time in recent years, with demand and the continued low supply meaning that homes are being snapped up far quicker than in the past. The National Association of Estate Agents (NAEA) said that in January, the volume of sales in these brackets was markedly higher than even just a month ago as more buyers come to the market.
It comes at a time when a separate report has stated that the number of properties for sale in January was the lowest total seen at any time since the middle of 2010, which has no doubt contributed to the competitive nature of buyers and the number of homes being sold at or above asking price. However, despite a fall in the number of homes on the market, sales actually increased by some 33 per cent during the month. The NAEA also said the number of house hunters grew by an average of 5.7 per cent across the country.
The January Housing Market Report from the NAEA states that the number of homes being sold without the need for a discount on their original asking price throughout the month amounted to 32 per cent. Meanwhile, some 12 per cent of the properties bought during the month went for a price that was higher than the original asking price. This compares favourably to even as recently as four months ago, the NAEA reported, when some 22 per cent of homes reached their asking price and seven price exceeded it in September of 2013.
"Supply has once again dropped and the competition for the best properties is really heating up. The growing number of house hunters in the market is causing buyers to react by offering asking price or over in many instances," said Jan Hÿtch, NAEA president. "With confidence in the housing market increasing we are seeing more people looking to up size and invest in property. The important first time buyer market also remained strong in January, but if competition for property continues to grow and the issue of supply persists, many would be buyers may find themselves being priced out."
Is it just about supply and demand of housing stock? Judge for yourself with this report - over 40 years of UK House price data
- Wednesday 19 February 2014