The average asking price has risen to £235,101 in England and in London asking prices in London have jumped by £10,000, according to the latest residential market review covering the first quarter of 2013 from Move with Us.
The report also shows that 125% more properties are coming on to the market than in December 2012 which the firm says is another sign of an improving market.
‘Although it’s still too early to call if the property market is improving, there are encouraging signs in place. Next quarter’s figures will confirm our thoughts and for the first time we will also be able to see what impact the Government’s new Help to Buy scheme has had on the market, if any,’ said Robin King, director at Move with Us.
The average asking price in London is up by 2.85% to £368,357 in the last three months, despite an increased number of properties coming to the market which would typically place downwards pressure on prices. Sale times for residential property in Greater London are 40 days faster than the national average in March and remain among the fastest in the country.
In the South East although the average asking price dipped in January to £295,798, perhaps in reaction to an increased number of new properties, by February it seems the market had adjusted to higher competition amongst sellers with asking prices surpassing the level seen in October 2012.
By the end of March, the average asking price had increased by over 1.4% to £299,934, £4,000 more than in January 2012. The South East maintained its position as the largest regional housing market in England in the first quarter of 2013.
The average asking price in the South West fell significantly in January to £253,524 as the number of new properties surged. However, prices recovered to reach an average of £255,976 in March, some 8.9% above the national average.
East Anglia had a positive quarter, ending at £251,519, the highest average asking price seen in recent years. Although the average time required to sell residential property increased overall in the first quarter, in March timescales decreased and if this trend continues, East Anglia will have adjusted to rising prices and increased competition amongst sellers signifying a flourishing market.
Average asking prices in the East Midlands increased incrementally in the first quarter of 2013, close to the overall trend for England. Prices returned to an average of £175,286 at the end of the quarter, which the firm says could be a very early indication of an improving market.
The average asking price reduced marginally in January in the West Midlands compared to December 2012, most likely as a reaction to increased competition from new properties. Despite the average asking price rising in February and March, the first quarter ended with prices at an average of £189,762, a similar level to that seen in October 2012.
Despite the increase in supply with around 4,900 more properties coming to the market in March than December, the average asking price in Yorkshire and Humber increased throughout the quarter, suggesting optimism from sellers and perhaps signifying an improving market. The first quarter ended with the average asking price at £168,145, the highest since October 2012.
As the number of new properties coming to the market increased in January, prices typically reduced in the North East region. Prices rose in March, similar to January’s figures but remained at lower levels than seen in the fourth quarter of 2012 indicating that the North East didn’t initially take to the increased competition from new properties coming to the market until the average asking price reached £152,350 in March.
A rise in new properties coming to the market naturally causes a reduction in price and the North West has followed this trend. In March, there were over 127% more new properties coming to the market than in December 2012. However prices reduced only marginally and stood strong for most of the first quarter which in the face of such a sharp upturn in new properties indicates a robust market, the firm says. Average prices remain at around £171,000 in March, a fall of less than 0.3% from December 2012.
