With average asking prices still £4,776 below the May 2023 peak, more are seeing a window of opportunity to buy. 

The number of sales being agreed is now 13% higher than at this time last year, and buyer demand is now 8% above last year, led by the less mortgage-rate-sensitive larger homes sector and London.

However, despite a better-than-expected start to the year, the market remains sensitive to pricing and external events.

Rightmove’s real time data shows the growth in buyer demand was tempered somewhat by a lacklustre Spring Budget, with no direct help for first-time buyers or mortgage market innovations,

The average 5-year mortgage rate is now 4.84% compared to 4.64% five weeks ago, as rates edge up to higher levels.

Rather than the start of another market surge, the signs are that overall activity levels have now returned to steadier pre-pandemic norms.

However, the elevated level of mortgage interest rates mean that the increased activity is skewed towards those buyers who are less sensitive to higher mortgage costs.

Tim Bannister, Rightmove’s director of property science, commented: “March is typically a strong month for asking price growth, as both buyer and seller activity levels rise and the spring selling season gets underway.

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“However, the stronger than usual price growth this March indicates that new sellers are feeling much more confident, with some perhaps being over-optimistic, that there is enough buyer activity and affordability in their local market to achieve a higher price.

“Despite the above average price increases in this opening three months of the year, asking prices are still £4,776 below their peak in May 2023.

“For those who can afford to buy and have yet to take action to move this year, this may provide a window of opportunity to buy as we now seem to be past the bottom of the market.

“While some sellers are still being over-optimistic with their pricing expectations, there are also more sellers who are aware of the need to be negotiable and realistic, with elevated interest rates compared to recent years still stretching affordability for many buyers.”

Sara Palmer, distribution director at TML, said: “After a positive start to the year, house prices have continued on their upward trend according to the latest Rightmove HPI.

“Slightly improved stability in mortgage rates have helped grow confidence levels, especially with the news that members of the Bank of England have started voting for a decrease in the base rate, prompting many to believe that rates will fall further throughout the year.

Daniel Austin, CEO and co-founder at ASK Partners, added: “Today’s data shows that the property sector is showing signs of recovery and the outlook has considerably improved.”