Average Prices for Newly Listed Homes Surge by Over £5,000 in March

In March, the average price of a newly listed home in the UK soared by more than £5,000, marking a notable increase from the previous month, suggesting a shift in seller confidence. Rightmove reported that the typical price tag on a house surged by 1.5% or £5,279, bringing the average asking price to £368,118, surpassing the usual March average of 1.0%. Despite this rise, the average asking price still remains below the peak observed in May 2023, by £4,776.

Rightmove emphasized that both agreed sales and buyer demand have surpassed last year's levels, albeit with sensitivity to pricing. Properties priced attractively are swiftly being snapped up, while those priced optimistically are lingering longer on the market. Tim Bannister, Rightmove’s director of property science, highlighted that this robust price growth reflects heightened confidence among new sellers, possibly overly optimistic about buyer activity and affordability in their local markets.

The market landscape indicates a cautious optimism among sellers, with an average time of 71 days to find a buyer, the longest at this time of year since 2019. Sellers are advised to balance their pricing expectations with market dynamics and the challenge of higher mortgage rates. Marc von Grundherr, director of estate agent Benham and Reeves, noted a sustained high level of activity among London buyers, particularly in the super-prime market, despite mortgage affordability concerns.

Source: The Independent