Asking prices for West Midland homes have ended the year more than £10,000 higher than when 2015 started, according to new research.
And in a year’s time, asking prices will be another £10,000 higher than they are now in the region as the “stark imbalance” between housing supply and demand from buyers continues to push property values to more record highs, Rightmove predicts.
New figures show sellers demanded £194,221 for a , despite a fall from November. This is £10,127 higher than the typical asking price in December 2014, or 5.5 per cent.
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While average asking prices did fall slightly month-on-month in December this year, the dip of 1.1 per cent or £3,120 was the smallest recorded since 2006.
Miles Shipside, director of Rightmove, said: “Whilst a fall is the norm at this time of year, this is December’s best post-financial-crash performance, signalling another round of price rises in 2016.
“Despite the shortage of suitable stock in many parts of the market, demand for housing is on the up. Although the average price of property coming to market is already up by a hefty 7.4 per cent compared to a year ago, Rightmove forecasts that prices will reach and breach new records next year.”
Mr Shipside said that, while initiatives such as Help to Buy will encourage developers to build more new homes, this will take time.
He said: “In the meantime, momentum and aspiration for home ownership that schemes such as Help to Buy create.
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“We therefore predict that the average asking price will be another £17,000 higher by the end of 2016.”
Rightmove’s figures, which cover England and Wales, show that sellers are now demanding £289,452 for a home on average. This is £19,975 higher than the typical asking price in December 2014, which was £269,477.
The £17,000 increase predicted by Rightmove would push the average price tag on a property well over the £300,000 mark by the end of 2016.
Already, asking prices in London are typically £55,458 or 9.9 per cent higher than they were a year ago, having reached around £616,548.
Rightmove also said the recent Autumn Statement had created dilemmas for people looking to buy or sell a home. From April 1 2016, people buying additional properties, such as buy-to-let properties and second homes, will pay an extra three percentage points above current stamp duty rates.
Mr Shipside suggested people intending to become first-time sellers, having been first-time buyers when they bought the property they currently own, may want to put their property on the market sooner properties which investors would consider suitable for renting out.
Mr Shipside said: “Given that the legal process could take six weeks or so once a buyer is found, they only have between now and the middle of February to take advantage of this artificially induced boost to buyer demand.”