99 per cent of homes sell at asking price
The proportion of homes being sold at asking price is currently at its highest level since 2004.
The percentage grew from 93.5 per cent of homes in England and Wales achieving their asking price in March last year, to 96.2 in the same period this, a ten-year high ‘reflecting the improving market conditions’, according to residential property analysts, Hometrack.
London has the highest amount of homes reaching asking price at sale, with 99.3 per cent of all homes hitting their target price, attributed to the ‘strength of demand and scarcity of supply’, while the measure is above 93 per cent across all regions, with all indicators pointing to further increases.
Hometrack’s monthly national housing survey also revealed that the time properties stay on the market is at its lowest since the financial crisis, with homes only listed for just under eight weeks.
Director of Research at Hometrack, Richard Donnell, said: ‘Much has been made of the impact of Help to Buy but the overall volumes of sales supported by the scheme remain relatively small. The real driver of higher house prices is record low mortgage rates and strong demand from first time buyers and investors who have no property to sell which is compounding scarcity.
‘Strong sales volumes are eroding the stock of homes for sale. The gap between supply and demand has been extended for the last 5 months and points to further price rises in the months ahead.’