According to recent figures, the number of houses selling over the asking price has reached a record high in May, with 1/3 of all properties going for more than the asking.
We take a look at the recent statistics from NAEA Propertymark to discover why this is happening, as well as looking at the number of house hunters on the market vs the number of properties available.
What does the data show?
The data from NAEA Propertymark shows that 33% of houses are selling over the asking price in the month of May, setting a new record. This figure is slightly above the figure of 32% in April, which was a new record at the time.
The average number of sales agreed per estate agent branch was at 12 in May. Although this was the same as April, year-on-year this is the highest figure for the month of May since 2007, where the number of sales per branch stood at an average of 13.
The number of sales to first time buyers remained the same in May as it was in March and April, with the figure at 27% of all property sales.
How does house demand and supply compare?
Demand and supply were unbalanced in the month of May, with demand for houses far outweighing the supply available on the market.
The average number of house hunters registered per estate agent branch in May was 506, an increase of over 18% from April, where the figure sat at 427. Not only was this figure an increase from April but was also the highest ever figure on record for May since 2004, where the amount of house hunters per estate agent branch sat at 421.
We previously reported a drop in property listings and recent data further emphasises the lack of supply. The supply figures were much lower than that of the demand, with the number of properties available per member branch at 25, falling from 27 in April. This is the lowest figure on record since December 2002 where there were 25 properties available per branch.
These figures mean there’s an average of 20 buyers for every property available on the market, emphasising the gap between demand and supply.
What has been said?
Mark Hayward, Chief Policy Advisor from Propertymark, has said: “It is incredible to see demand for housing continuing to break records and more homes selling for over the asking price than ever as consumers rush to beat the initial stamp duty deadline at the end of the month. With 20 buyers per available property, we are firmly still very much in a strong sellers’ market; properties are being snapped up swiftly and at record high prices.
“However, we anticipate that there will be a much-needed rebalancing over the coming months as the remaining stamp duty deadline phases out and people start returning to a semblance of normality, spending money they have been able to save during the pandemic on holidays and more normal activities such as spending to see friends and family.”