Are Houses Selling Over Asking Price UK?
If you’re planning to buy or sell a house in the near future, you’re likely to want to know what might happen with house prices in the near future and whether right now is actually a good time to move. If you’re planning to sell a house in the UK, houses going over asking prices can be a good deal for you. If you’re a buyer, houses going over the asking price may mean that you need to wait and save just a bit of extra money to get into the home you want. The simple truth, though, is that what determines whether houses are going over the asking price is actually a number of different features of selling housing.
What Determines Housing Prices in the UK?
Exactly what decides a house’s selling price? There are several different things that can dictate how much houses actually go for. The first is how healthy the economy as a whole is in the country. The overall unemployment rate plays a role, but so does wage growth. Both factor into a number called consumer confidence, and that impacts whether people feel like this is the right time to move and exactly what they’re willing to pay for houses when they do move.
Another big piece of the picture when it comes to selling houses in the UK and their prices is interest rates. The Bank of England sets the base interest rates for mortgage loans, and as long as that number stays fairly low, most people can afford to spend quite a bit more on a property. That can increase a house’s price. To sell, then at that point, means bigger money. If rates go up, though, people can’t afford to spend quite as much on housing, so the prices tend to get a bit lower.
The last major factor in the house prices equation is supply and demand. Simply speaking, the more houses there are for sale at a given point in time, the lower the overall price might be. Imagine, for a moment, a brand new housing development was just completed in an area, and there are suddenly lots of homes up for sale in that same area. There’s not as much competition for those homes, and as a result, home prices in that area could see a drop.
What’s Happening with Houses On The Market in the UK Right Now?
Trying to decide where things are at right now? There are actually a number of snapshots that show whether houses are going over the asking price at the moment. Maybe the most accurate of those measurements is the UK House Price Index. This is the most accurate version of the price indices you’ll be able to find because it’s calculated on completed sales across the UK. The data all comes from the HM Land Registry, as well as a number of other sources, taking into account things like how much did a house sell for and whether or not a mortgage was obtained on the property. Currently, it shows the average house prices have fallen quite a bit in the last six months, but that they’re beginning to rebound considerably, so in the near future, it’s possible that the price of the property may once again be what both buyers and sellers expect. While most buyers weren’t offering over the asking price in the UK in 2022, there’s hope that will happen again in the future. Are houses selling? Absolutely, but not as fast as they once were, and not for quite as much money either.
So, Is Now a Good Time to Sell?
There are many other things outside of housing prices to factor in before you decide to sell your home. For example, you’ll need to think about the average cost of selling a house UK sellers tend to pay as well as what your plans are after you’ve sold your home. Now is a good time to sell your home if you need to sell. Whether you’re looking for a larger home for your growing family or you need to move for a job, it doesn’t really matter if houses are going over the asking price if it’s time to sell your home. Instead, focus on your personal needs.