Spring Market Brings Stronger Buyer Demand and Sales.
The spring season is in full swing, and the property market is showing signs of strength and recovery. According to data from Rightmove, the average price of newly marketed properties has risen by 1.5% (an increase of £5,279) this month, bringing the average property price to £368,118.
This marks a significant increase from the historical average March rise of 1.0% and is the largest monthly increase in prices seen in the last 10 months.
At Property Bee, we've noticed this positive trend firsthand, with a greater number of home purchases compared to last year. The market recovery comes as average asking prices remain £4,776 below the May 2023 peak, presenting buyers with a window of opportunity. The number of sales being agreed upon is currently 13% higher than the same time last year, demonstrating a resurgence in buyer interest.
However, the market is still sensitive to pricing and external events. Rightmove's real-time data shows that the recent Spring Budget, which did not include direct support for first-time buyers or mortgage market innovations, has slightly tempered the growth in buyer demand. The average time to find a buyer is now 71 days—the longest at this time of year since 2019. Attractively priced properties are selling quickly, but over-optimistically priced properties are taking longer to find buyers.
At Property Bee, we advise sellers to be realistic and negotiable with pricing given the current market conditions. Mortgage rates have increased slightly, with the average 5-year mortgage rate now at 4.84% compared to 4.64% five weeks ago. These higher rates continue to impact buyer affordability.
The top-of-the-ladder sector, with its less mortgage-rate-sensitive buyers, leads the charge in sales, with an 18% increase in sales agreed upon compared to last year. London's market has also seen a notable increase in buyer demand, driven by factors such as the return to the office and wage increases.
It's been a positive start to the year and Property Bee are here to help you navigate the evolving property landscape and make informed decisions in today's market.
