New ‘house price forecast’ tool launches with bold prediction
House prices will benefit from a significant summer uplift – that’s according to a new property price forecast tool from comparison site Reallymoving.
It has predicted average prices are set to rise by 9% in the three months between May and August 2019, based on its unique method of forecasting future house price movements.
The business claimed it can provide an accurate three-month property price forecast because homebuyers register on its site for quotes for home move services around 12 weeks before their purchase completes, providing data on the agreed purchase price. Those deals then complete three months later.
And Reallymoving noted that prices agreed during the past few weeks are expected to deliver a surge in average values of 6% between May and June 2019, followed by a further 3% increase in August.
It also suggested that the market is following a similar pattern to spring/summer 2018, when the Land Registry recorded price rises of 4.4% between May and August 2018, but this year, greater pent up demand and growing impatience with the Brexit process means a more pronounced increase in house prices during the summer.
Rob Houghton, CEO of reallymoving, explained: “Prices agreed this spring will show in Land Registry data in the summer, yet our customers registering for home move services as soon as their deal is agreed are giving us unique insight into what lies ahead for the housing market.
“Our forecasts suggest that sellers are growing tired of the ‘wait and see’ approach and once the Brexit deadline passed at the end of March, with no further clarification, sellers decided to press ahead with their move. This new buyer demand and a continued shortage of quality housing stock is on course to drive strong price growth between May and August, with particular surges in regions benefiting from strong demand such as the North East and the South West, where affordability remains attractive and wages are rising.
“Annually, average UK prices have been falling since the start of the year but in June we can expect prices to see a return to positive growth with a rise of +1% year on year, followed by 0% change in July. This suggests that a strong market performance over the spring will see prices make up the value lost in the first part of 2019 and are set to recover to 2018 levels this summer.”