UK homes for sale at an eight-year high, expected to limit house price rises.

From Morningstar: 2024-05-30 05:46:00

The supply of homes for sale in Britain has reached an eight-year high, with the average estate agent having 31 homes on offer, totaling about £230 billion. This surge in supply is expected to limit house price rises for the rest of 2024, as more sellers return to the market.

Experts believe that the increase in supply is due to existing homeowners regaining confidence after delaying moving decisions last year. Zoopla reported that about one-third of homes for sale in 2023 failed to find buyers, but a rise in sales volumes and an expected drop in mortgage rates have boosted sentiment.

House sales agreed have increased by 13% compared to last year, but supply still outstrips demand, giving buyers more options. This trend is projected to keep house price inflation low, with Zoopla reporting a slight decrease of 0.1% over the past 12 months.

The quarterly rate of house price inflation has picked up recently, but the growth rate has slowed in the last month. Zoopla anticipates that prices will remain flat for the year, as the market adjusts to the increased supply of homes for sale.

Richard Donnell, executive director at Zoopla, emphasized the importance of realistic pricing for homeowners looking to sell in 2024. He expects the pace of new sales to slow with the announcement of the election, but believes that greater choice for buyers will help keep house prices stable throughout the year.



Read more at Morningstar: UK Homes For Sale at Eight-Year High as Sellers…