April’s House Price Index: the return of the first-time buyers

This month’s Rightmove House Price Index tells a clear story of the first-time buyer market, with sales on the first step of the ladder now 4% higher than in March 2019’s pre-pandemic market. With average prices for this demographic at a new record price of £224,963 and the lowest five-year fixed mortgage rates at 4.19%, the index suggests a busy summer for first-time buyers.

Across all market segments, sales agreed are now matching 2019 and have recovered well from the impact of September’s mini-budget. Nationally the average price of new listings has risen by just 0.2%, but Sheffield and Yorkshire sit at 1.2% price growth, bang on where it should be for this time of year, with the Chesterfield region sitting just below at 0.9% growth.

Redbrik’s Managing Director, Mark Ross, said, “It’s fantastic to see our region enjoying an active and sustainable market, particularly for the first-time buyer segment, at a more enjoyable pace. The appeal of home moving in Sheffield and Chesterfield and the great range of properties available means home movers can be confident there will be a home out there for them and likely a buyer if they are looking to sell too.”

What does this mean for first-time buyers?

First-time buyers have an excellent opportunity to buy over the coming months as mortgage rates have settled and rental price growth shows no sign of slowing. However, with demand in the segment 11% higher than in the same period in 2019, buyers of first-stepper homes need to put themselves in the best financial position possible to obtain the dream first home they want. Speaking to a recommended financial advisor will enable first-time buyers to ready themselves for the purchase, putting them above others offering on similar properties.

What does this mean for buyers across the market?

Rightmove’s Director of Property Science, Tim Bannister, has advised buyers may have better options than in previous months. “stable conditions may tempt more sellers to enter the market who had been considering a move in the last few years but had been put off by its frenetic pace. Buyers may have struggled to find a home that suited their needs in the stock-constrained market of recent years and will now find more choice available. However, those who have now decided to make a move should not wait around too long to make an enquiry if they see the right home for sale, as not only is the number of sales agreed now back to pre-pandemic levels, but homes are also on average selling twelve days more quickly than at this time in 2019.”

What does this mean for sellers?

Discussion around pricing correctly leads the market narrative. With average listing prices now sitting at £366,247, experts suggest a sensible pricing and quality multichannel marketing strategy will produce the best results for sellers. 

The average time to sell in the Sheffield area is just 54 days, one of the fastest rates in England, with properties in Chesterfield taking just one day longer. There is a healthy demand for properties across the market, so sellers can expect good results, bearing current market influences in mind.

If you have a move to make, get in touch with your local Redbrik office today.