Property prices appear to be blooming again, along with the spring flowers, helped along by growing competition among buyers. Increasing numbers of people are looking to move into a new home, with a 12% rise in the number of prospective buyers during February. According to the property network Sequence, there are now on average seven buyers for every property that is on the market.
If you are looking for someone to buy your home, this is great news. With more interested buyers around, you are more likely to get a faster sale, at a better price. On the other hand, if you are looking to buy a new home, you could run into trouble. If you are planning to buy the kind of property that is in great demand or if you are looking in a popular area, the competition could be fierce. You might see properties disappearing from the market very quickly, or be forced into offering more when you do find a property that is right for you.
However, there are some signs that the supply of properties onto the market is also stating to rise, as often happens at this time of the year. Once more homes are up for sale, the competition between buyers should become a little less fierce, particularly outside of the most popular neighbourhoods. Even so, many of us are likely to face rising costs if we are planning to move home this year. We might be making higher offers to eliminate the competition, and we are already facing higher prices.
One estimate from LSL Property Services puts the average price for a family home in the UK at £273,528, which is actually £34,000 higher than the pre-crisis peak in early 2008. A substantial part of this sum was gained during the last year, and it is likely to continue increasing in many parts of the country during 2015. The areas where competition between buyers is strongest are likely to see the most significant rises, so if there are a lot of people looking for the same kind of property as you, in the same area, you might find prices going up as you search.