Average property asking prices have risen by 1.5% per cent in March to £368,118 on the back of an 8% increase in buyer demand and 13% more sales agreed, compared to this time last year, according to the latest figures from listings website Rightmove.
This month’s price increase is the biggest that Rightmove has recorded in 10 months and significantly outstrips the average 1% rise seen in March over the previous 22 years.
The data shows that nationally the typical asking price has risen by £13,000 since December, though average asking prices are still £4,776 below their May 2023 peak. Rightmove’s figures also reveal that in Yorkshire and the Humber asking prices are up by 2.4% year on year.
Patrick McCutcheon, our head of residential said: “The positive start to the year for the housing market is continuing and we expect to see more property transactions in Yorkshire in 2024 compared to last year.
“However, the market is still sensitive to pricing and external events. Properties that are priced attractively will sell quickly, but buyers who insist on being too optimistic with their price expectations should take the advice of an experienced, local estate agent on board, as this can really be beneficial in delivering a sale.
Tim Bannister, Rightmove’s director of property science, commented: “March is typically a strong month for asking price growth, as both buyer and seller activity levels rise and the spring selling season gets underway. However, 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. While some sellers are still being over-optimistic with their pricing expectations, there are also more sellers who are aware of the need to be negotiable and realistic, with elevated interest rates compared to recent years still stretching affordability for many buyers.
“It’s been a positive first three months of the year for the market and better than many anticipated. However, we know from last year how quickly the picture can change with some negative economic news or surprises, evidenced in Rightmove’s data which captured the immediate buyer reaction to the lack of major housing initiatives in the Spring Budget. Sellers are right to feel more confident and optimistic this year, but buyer affordability remains stretched and higher mortgage rates are an ongoing challenge. With the market still sensitive to pricing and external events, some caution and willingness to negotiate is advised for sellers who are keen to find a buyer in the spring market.”
