According to Zoopla, the worst of house price declines may be over, with annual growth slowing to 3% and a 1% drop in prices expected for the rest of 2023. The proportion of properties on the market experiencing price reductions has fallen to 24%. Buyer demand reached its highest level this year after Easter, 14% higher than in 2019. Easter also saw a 10% increase in new sales compared to the five-year average.

First-time buyers with mortgages accounted for one in three sales (34%) in 2022, surpassing the 31% of home movers buying with a mortgage. Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, noted that the property market could be recovering, with first-time buyers playing a significant role. As house prices rise slower than wages, they may continue to support the market throughout the year.

Zoopla’s data reveals that spring has boosted enthusiasm for homeownership, with buyer demand reaching a 2023 peak, a 66% increase in new properties on the market, and sales surpassing the five-year average. Although buyer demand is lower than the same period last year, a better balance of supply and demand is making it easier for prospective buyers to find suitable properties.

The sales process has been facilitated by a more realistic approach from sellers, with just under a quarter needing to reduce prices after initially overestimating the market. Buyers have also shown a willingness to compromise, with two-bedroom properties seeing a significant increase in sales. However, Coles pointed out that other measures, such as the Royal Institution of Chartered Surveyors (RICS) survey for March, showed declines in buyer demand, sales, and house prices. It remains to be seen if these positive signs will be consistent across the market.