The start of the year has brought some optimism to the housing market, which is continuing as Spring approaches. This month, the average national asking price for new-to-market properties jumped by 1.5%, reaching £368,118—a more significant rise than the typical 1.0% increase we see in March and the largest in 10 months.
Price fluctuations often reflect seller confidence. When the market slows, sellers might drop asking prices, particularly if fewer buyers are interested. This month, however, things are looking up. Buyer demand has grown by 8% since last year, and the number of completed sales has climbed by 13%.
Tim Bannister, a property expert from Rightmove, notes that March tends to see a spike in asking prices as the Spring selling season kicks off, but this year’s stronger-than-average growth hints that sellers are feeling more assured and anticipate sustained buyer interest and the ability to ask for more.
The buzz in the market is a promising indicator for future transactions in 2024. Still, buyers are conscious of pricing and are searching carefully, influenced by higher mortgage rates and ongoing affordability issues. As a result, homes are staying listed for longer – the average selling time is now 71 days, the longest for this time of year since 2019.
Sellers considering the market should heed local estate agents’ pricing advice to meet current market conditions. For more insights on local house prices, check out Rightmove’s Monthly House Price Index. Those curious about their home’s value might also want to try an instant valuation.
What could happen next in the housing market?
We monitor housing market trends in real time. After the March 6 Spring Budget—which held few significant changes for most buyers and sellers—there was a brief lull in activity. Tim mentions that although there’s been a solid start to the year, sudden negative economic news can quickly affect the market, as Rightmove’s data shows following the Spring Budget.
Sellers have reasons to be hopeful in 2024, but it’s important to remember that buyers are still budget-conscious, and mortgage rates remain high. Given that the market is still price-sensitive and can react to external factors, sellers should be prepared to negotiate. Sellers looking to secure buyers in the Spring market should be cautiously optimistic.
This week, the February inflation figures and the Bank of England’s interest rate decision will be announced, which could influence mortgage rates.
