The average asking price for properties entering the market has surged by 1.1% this month, reaching £372,324, a mere £570 shy of the record set in May 2023. This rise in asking prices reflects a 1.7% annual growth rate, marking the highest level seen in a year. A significant driver behind this upward trend is the robust performance of the largest homes, particularly in the upscale segment, experiencing its most substantial price growth since 2014.

While the market is displaying vitality, it operates at varying speeds, with segments like first-time buyers and second-steppers experiencing slower growth due to mortgage dependencies. Nonetheless, the influx of new sellers has increased by 12% compared to the previous year, paralleled by a 13% uptick in sales agreements, indicating a notable rebound from last year’s subdued Spring.

The surge in activity is most pronounced in the top-tier housing market, with a remarkable 18% increase in new sellers and a corresponding 20% rise in sales agreements compared to the previous year. Conversely, segments reliant on mortgages witness more moderate growth rates.

Despite challenges posed by high mortgage rates, wage growth, stable house prices, and increased buyer activity have contributed to a positive start to the year. However, market sensitivity to pricing remains high, urging sellers to adopt realistic pricing strategies to secure sales.

Agents observe an encouraging trend of increased ‘for sale’ and ‘sold’ signs, with applicant registrations rising by 20% compared to the previous quarter. Although the supply and demand gap is narrowing, maintaining realistic pricing expectations remains crucial. The anticipation of a potential interest rate cut and the uncertainty surrounding the upcoming general election may introduce short-term market fluctuations, emphasizing the importance of timely decision-making.

As inflation eases and the possibility of a base rate reduction looms, the outlook for the property market remains positive. However, sellers must remain pragmatic in their pricing strategies, mindful of the ongoing price sensitivity in the market. Overall, the improved metrics in terms of property listings and sales signify a healthy trajectory for the market compared to the previous year.