Rightmove data suggests a testing time for house prices
One figure in the commentary alongside the latest set of Rightmove statistics caught my eye – apparently there has been a 20% increase in sellers coming to the market compared with the previous year.
Rightmove puts this down to resurgence in home movers putting their current homes on the market with more confidence of finding a buyer.
There has been much talk of people who needed to move renting their homes out rather than selling them into a bleak market.
This does suggest more confidence in the market, which is how Rightmove reads it.
For me, however, what will be fascinating to observe is its effect on prices.
There is a school of thought, to which I largely subscribe, that much of what is supporting prices is the paucity of choice for eager homebuyers. This may tempt many buyers to pay more a bit more than they might otherwise have done if and when they do find the home they really want.
In that sense there has been a temporary imbalance between the number of buyers and the number of “suitable” homes.
If the willingness of more home movers to put their properties on the market leads to a shift in the balance of buyers to suitable homes, what will be the impact on prices?
The next few months may well test what appears to be a period of stability in house prices.