The UK property market is once again abuzz with activity, as evidenced by the latest statistics revealing a notable rise in the average asking price of properties. According to recent data, the average asking price has surged by 1.1% this month, reaching £372,324, a mere £570 shy of the record set in May 2023. Moreover, the annual rate of price growth stands at +1.7%, marking the highest level seen in the past 12 months.

What's driving this surge in the property market? It seems that the largest homes, catering to the top-of-the-ladder sector, are witnessing the most significant growth in activity. With a remarkable 18% increase in new sellers compared to last year, coupled with a 20% rise in the number of sales being agreed upon, showing a renewed interest in this part of the market.

However, the market's dynamics are not uniform. The market remains price-sensitive, and operating at different speeds, with prices and activity rising more slowly in the more mortgage dependent first-time buyer and second-stepper sectors.

There's an overall positive trend in seller and buyer activity. The number of new sellers entering the market has risen by 12% compared to the previous year, while the number of sales being agreed upon has seen a 13% increase. This uptick in activity, particularly in the top-of-the-ladder sector, is fueling a cycle of more listings leading to more sales.

Homeowners, spurred by this increased activity, are seizing the opportunity to enter the market. In fact, recent data shows that Thursday, March 28th, witnessed the highest number of new sellers entering the market in a single day so far in 2024.

Amidst the optimism, it's crucial to recognize the market's price sensitivity. Tim Bannister, Rightmove’s Director of Property Science, emphasises the importance of realistic pricing to secure sales, cautioning against overambitious pricing strategies that could deter potential buyers.

Turning our attention to the West Midlands, the region has seen its average asking price climb to £292,061, reflecting a 1.1% increase from the previous month and a notable 2.3% increase from the same time last year. Now is an opportune time for sellers to explore the market's potential.

If you are thinking of selling and are curious about how much your property is worth in the current market, book a valuation with one of our experienced agents. They'll provide you with an expert and personal valuation along with tailored advice.

The information provided in this blog is sourced from Rightmove's House Price Index.