(Alliance News) - Rising house prices in March show that sellers may be overconfident, with buyer demand putting upward pressure on prices, according to new data from the Rightmove house price index.
The average price of newly marketed properties rose GBP5,279, or 1.5% in March to GBP368,118. While prices always experience a Springtime boost, Rightmove said, this tracks ahead of the historic average increase of 1.0% for the month of March, and represents the biggest monthly increase in ten months.
However, average prices are still GBP4,776 below their peak in May 2023, and "more consumers are seeing a window of opportunity to buy", according to Rightmove analysts.
The number of agreed sales was 13% higher than the same time in 2022, with buyer demand 8% ahead over the same period, and London seeing the greatest year-on-year increase.
However, Rightmove warned that the market "remains sensitive to pricing and external events", with buyer demand somewhat tempered by a "lacklustre" Spring budget, which offered no direct assistance for first-time buyers.
The average 5-year mortgage rate stands at 4.84%, compared to 4.64% five weeks ago.
Tim Bannister, director of property science at Rightmove, commented: "The stronger than usual price growth this March indicates that new sellers are feeling much more confident, with some perhaps being over-optimistic, that there is enough buyer activity and affordability in their local market to achieve a higher price. Despite the above average price increases in this opening three months of the year, asking prices are still £4,776 below their peak in May 2023. For those who can afford to buy and have yet to take action to move this year, this may provide a window of opportunity to buy as we now seem to be past the bottom of the market."
By Hugh Cameron, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.