Average asking prices have seen the biggest rise in three years

As movers plan for 2023, average asking prices have seen the biggest rise in three years.  

We can see what’s happening in the housing market right now thanks to the Rightmove House Price Index, which contains the most up-to-date monthly data on asking prices in England, Scotland, and Wales. According to the report, the average asking price of a home in Great Britain rose by 0.9% to £362,438 this month. 

The price increase follows two months of price declines in November and December 2022. In October last year, average prices were 2% lower (£8,720) than at their record high.  

After the traditionally quiet period leading up to and during Christmas, asking prices usually rise in January. The price increase this year is the biggest since 2020.  

Several homebuyers and sellers appear to be eager to move forward. Estate agents were busiest on the 5th January, when people asked for home valuations for the third time. In the last two weeks, there’s been a 55% increase in people contacting estate agents about homes listed on Rightmove.  

Rightmove’s property expert, Tim Bannister, says: “Given that the pause for Christmas came unexpectedly early last year, it was important to see whether buyers and sellers would pick up their plans again at the beginning of this year, or wait to see what the first few months might bring. The numbers certainly suggest that activity has bounced back after Christmas.” 

What’s the outlook for the 2023 housing market?

At the end of 2022, there was uncertainty around how much the property market would be affected by things like rising interest rates, inflation and the increasing cost of living. 

And though it’s early days, there are several signs of positivity as we head into 2023.  

How does this impact your decision to sell?

Compared to last year’s busiest start to a year, home-buyer demand is down 4%, but up 4% from the last ‘normal’ market before the pandemic. 

The number of available homes for sale is still well below what we’re used to seeing in a more normal housing market, even though more people are listing their homes for sale.  

The seasonal increase in new seller asking prices may be encouraging if you’ve been putting off moving until the New Year.  

You should still price your home competitively when you’re getting ready to sell, and you should listen to your estate agent’s advice. 

If early-bird sellers are already on the market and have priced their properties accurately, they will likely benefit from the rebound in buyer activity. Overvaluing sellers may get caught out as property stock builds over the next few weeks and months, and they will face more competition from better-priced sellers. It is important to listen to your estate agent’s advice about your hyper-local market and price your home correctly the first time to avoid a stale sale or the need for further reductions down the road.