The average asking price of property coming to the market rises by 1.1% (+£4,207) this month to £372,324, just £570 short of the record in May 2023, while the annual rate of price growth is now +1.7%, the highest level for 12 months.
A key factor behind this growth towards a near-record average price is the largest homes, top-of-the-ladder sector, which is seeing its strongest start to the year for price growth since 2014.
However, the market remains price-sensitive, and operating at different speeds, with prices and activity rising more slowly in the more mortgage dependent first-time buyer and second-stepper sectors.
The number of new sellers coming to the market is up by 12% compared to this time a year ago, and the number of sales being agreed is up by 13% as both seller and buyer activity rebound from last year’s much more subdued Spring.
The biggest growth in activity is taking place in the largest homes, top-of-the-ladder sector, with the number of new sellers up by 18% compared with last year, and the number of sales being agreed up by 20%.
Home-owners are springing into action, with Thursday 28th March seeing the highest number of new sellers coming to the market in one day so far in 2024, and the third largest since August 2020.
There appears to be a window of opportunity for those considering a move to act, with a busy summer of sporting events, followed by a likely General Election, creating more home-mover distractions than usual.
Director of Benham and Reeves, Marc von Grundherr, said, “Spring has sprung in housing market terms with growing buyer demand pushing sellers to increase asking prices to near record levels.
As the rate of inflation slows and market uncertainty subsides, the property market is responding, as it always does, with upward price movements.
What’s more, wage growth is now outstripping both consumer inflation and house price growth, ensuring that for the first time in years, house price affordability is actually improving.”
Ruth Beeton, co-founder of Home Sale Pack, said, “As buyer demand continues to climb so too has the asking price expectations of the nation’s sellers. However, the real positive to take is that, at 64 days on average, homes are selling at their fastest since November, indicating just how much buyer appetites have improved.
In fact, the average home is selling 18% faster than in January alone and that is the factor to watch here as faster sales mean even higher prices in the coming months. However, the downside is it also means an increased chance of fall throughs as the industry struggles to cope with the increasing strain placed on the archaic conveyancing process, in particular.”
CEO of Open Property Group , Jason Harris-Cohen, said, “’Optimism reigns as sellers shrug off any hint of election jitters, throwing caution to the wind with almost record levels of enthusiasm’.
It’s interesting to see that the highest end of the UK property market is responding most aggressively in this month’s house price numbers, with the biggest upwards push in asking prices in ten years.
For those at the higher rungs of the proper ladder, it’s seemingly never been a better time to sell. Of course, the challenge will be their ability to secure a buyer as such strong price growth means that this level of the housing market just got that little bit more unobtainable for those looking to reach it.”
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