Average Price
The average price of properties coming to the market for sale rises by 1.5% (+£5,279) this month to £368,118, as the market continues its recovery after a muted 2023. This price growth is notably higher than the average historic March increase of 1.0%, and the biggest monthly increase in prices for the last 10 months.
Rather than the start of another market surge, the signs are that overall activity levels have now returned to steadier pre-pandemic norms.
Supply & Demand
Since the beginning of March, the number of sales being agreed is 13% higher than at the same time last year, continuing to pave the way for a higher number of transactions this year than the one million in 2023.
So far in March, buyer demand for top-of-the ladder properties is 12% higher than the same period last year, compared with 8% higher overall for all property types. Agents report that buyers are quickly cherry-picking attractively priced properties, whilst over-priced properties are taking much longer, pushing the average time to find a buyer up.
Interest Rates
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.
After several weeks of rate rises, the average 5-year mortgage rate is now 4.84% compared to 4.64% five weeks ago, continuing to test buyer affordability. The current base rate set by the Bank of England, is 5.25%.
Regional Trends: North East
The average price for homes in the North East is £187,592 with a 1.7% increase since last month, and a 2.0% increase since the same period last year. On average, it takes 64 days to sell a property in the North East region.
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Source: Rightmove
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