This week, Zoopla has released its monthly House Price Index (HPI) report, analysing the current state of the housing market. The May findings? Well, the UK’s leading residential property resource found that the supply of homes for sale is currently the highest it’s been in the last eight years - and it seems to be signalling that the times are turning for the better.
Whether you’re looking to be buying a house or are in the process of selling one, this news is good across the board as it should prevent any volatility in the property market and keep the house prices stable for the rest of the year.
Additionally, the fact that every estate agent has an average of 31 homes for sale in their roster means that there is enough choice for those looking to buy a home and move. And that is despite the high mortgage repayment rates which Zoopla reported on last month.
Zoopla reports the highest supply of homes for sale
The supply of homes for sale is 20% higher right than it was last year, with agreed sales 13% higher than last year.
‘The market is getting back to normal and people who delayed moving last year due to higher mortgage rates are back in the market - in addition to homeowners we believe some second homeowners may be selling homes in the face of tax and planning changes while there remains a slow but steady stream of landlords selling up,’ comments Richard Donnell, executive director of Zoopla.
‘Despite the fact that interest rates have not yet fallen, this does not seem to have deterred sellers and buyers from purchasing their ideal home,' adds Nathan Emerson, CEO at Propertymark, adds, ‘Despite this, properties are not selling with the same urgency as before, which also explains why stock levels are building up.’
But it is still a great time to sell your house - or buy one. And this shift also signifies an overall strengthening of the housing market and the UK’s economy as a whole.
‘This is good news as so much of the health of the housing market is observed through house price inflation,' explains Richard. 'In reality, the health of the market is more closely linked to people's ability to move home and so it's positive to have more sellers, many of whom are also buyers.'
Nathan continues, ‘In a further boost to buyers and sellers, there are many signs that the nation’s economic conditions are improving, and a strong housing market will always be the backbone behind a booming economy.’
It is yet to be seen what the upcoming general election on 4th July will do to this booming house selling market. But Richard from Zoopla is optimistic, ‘The election is unlinked to stall the momentum in sales to the degree we have seen in previous years. Committed buyers and sellers will continue pushing ahead to secure a sale.’
