Conveying traffic jam! Agents expect half a million…
More than 500,000 homes are currently being sold under contract, creating a blockage in the transfer of ownership, claims Rightmove.
Data from the portal suggests that the average time the agency’s inventory goes from contract sale to completion is 150 days, 44% more than in 2019.
Rightmove says this suggests a seller needs to enter the market within the next few weeks if they are to have any chance of finishing by Christmas or the end of the year.
The figures, revealed in Rightmove’s House Price Index for June, show asking prices hit a fifth consecutive high of £368,614, up 9.7% a year but 0.3% lower on a monthly basis.
The annual growth rate was down from 10.2% last month, while the monthly figure fell 2.1%.
Rightmove said competition for properties and the shortage of supply were easing.
Buyer demand for each available property is down 8% in May from April, but remains 6% higher than last year, and more than double the five-year May average before the pandemic, according to Rightmove.
The number of properties put on the market for sale also increased in May and is now up 7% from the same period last year, but still below 2019 levels.
The average time on market for properties remained at a brisk 32 days.
Tim Bannister, Director of Real Estate Science at Rightmove, said: “The exceptional pace of the market is slowing down a bit, as demand gradually softens and price increases start to slow, which is entirely to be expected given many record numbers in the market. last two years.
“When you look at the number of buyers contacting estate agents compared to 2019 or the pre-pandemic five-year average, demand is still very high compared to what was once considered normal.
“We are hearing from agents that while they may have had slightly fewer inquiries for each property over the past few months, they are still seeing significant interest from multiple buyers and achieving successful sales.
“Going into the second half of the year, we expect the pace of price increases to slow further, especially given the worsening affordability challenges people are facing.
“We expect this to bring the annual rate of price growth from the current 9.7% towards the 5% increase predicted by Rightmove at the start of the year.”