The average asking price now stands at to £299,934.
The South East also maintained its position as the largest regional housing market in the first quarter of 2013.
The region had the largest number of new listings in England, contributing over 6,000 more than Greater London, its closest rival, and the quarter ended with new listings at a six month high.
The average number of days to sell residential properties also decreased and by the end of March the average selling time for the South East was reduced to 96 days, 40 days faster than the national average.
Robin King, director at Move with Us, said: “An increased number of new listings, rising house prices and reduced selling times indicate a significantly improving market.
“Timescales reduced slightly in March which is an indication that the market quickly adjusted to cope with increased competition from new listings and faster selling times.
“However this improvement will need to be confirmed in the next Move with Us Residential Market Review.”