Buyer Spring Market Update

Buyer Market Update

The onset of Spring heralds a notable surge in buyer interest and sales activity within the property market. As March unfolds, the average price of newly introduced properties experiences a rise of 1.5%, reaching a substantial £368,118. This increase surpasses the typical March escalation and stands as the most significant spike witnessed in a span of 10 months. Such a robust performance signals a definitive rebound from the lacklustre trends that characterized the market throughout 2023.

The buoyant start witnessed at the beginning of the year persists, painting a promising outlook for increased home transactions compared to the previous year. Despite the ongoing recovery, prices still linger £4,776 below the peak observed in May 2023. Nonetheless, this price dynamic has spurred a growing perception among potential buyers of a favourable window for property acquisition. Sales agreements have surged by a noteworthy 13% compared to the same period last year, fuelled by an 8% uptick in buyer demand.

However, amidst the encouraging trends, the market remains delicately poised, susceptible to pricing fluctuations and external economic stimuli. The recent unveiling of the Spring Budget, while anticipated to inject vigour into the housing sector, fell short of delivering direct support to first-time buyers or fostering innovation within the mortgage market. Consequently, the immediate aftermath of the Budget saw a moderated response from buyers, indicating a degree of caution in the wake of unmet expectations.

Furthermore, the process of finding a buyer has elongated, now averaging at 71 days—the longest duration recorded at this time of the year since 2019. This prolonged timeframe underscores the discerning nature of modern buyers, who are meticulously scrutinizing properties before committing to a purchase. Concurrently, the average 5-year mortgage rate has crept up to 4.84%, presenting a persistent challenge to buyer affordability.

Looking ahead, while the market’s resilience is commendable, sellers are advised to exercise caution amidst ongoing affordability concerns and the inherent sensitivity to pricing dynamics and external economic variables. As such, a measured approach, coupled with a readiness to negotiate, emerges as prudent counsel for sellers navigating the current Spring market landscape.

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