The latest House Price Index shows property prices in the area have grown by 17 per cent over the last year, with the average Scarborough house price in April standing at £211,586.
Wai Kong Yau, Managing Director at estate agents Colin Ellis on Aberdeen Walk, said: "Scarborough in the last 18 months has benefited a lot coming out of lockdown.
"Lots of people have relocated because they can work from home, or people have re-evaluated their lives and realised that living five minutes away from the countryside and the sea has a lot going for it."
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Land Registry figures show that over the last year the average sale price of property in Scarborough rose by £31,000 – putting the area top among Yorkshire and the Humber's 21 local authorities with price data for annual growth.
Kong said there are not enough properties on the market in Scarborough and so any that come on in a popular area or are competitively priced draw a lot of interest.
"People relocating to the area were outbidding local residents, which has been hard because if someone is prepared to bid £20,000 to £30,000 over the asking price compared to someone local who offers the asking price it's hard for them to compete," he said. "People have realised that if they want the property they will have to pay a lot over the odds for it."
Kong said a property that was recently sold on the North side of Scarborough in the Scalby School catchment area received 11 offers, compared to an average of three or four.
Lauren Spivey, branch manager at Hunters on Huntriss Row, said: "We achieve 100 per cent and over asking price at the moment and if it's a popular property in a popular area and you put in an offer lower than asking price you wouldn't really be in with a chance."
She said they have been dealing with a lot of first-time buyers, who are snapping up terraced properties. The new figures show Scarborough's first-time buyers spent £181,000 on average – £26,000 more than a year ago, and £47,000 more than in April 2017.
Lauren and Kong agree that higher property prices are not deterring buyers and that it is "certainly a seller's market". They both said that the ending of the stamp duty holiday has not made a "noticeable difference" to the number of people moving home and the market remains active.
York Central's MP, Rachael Maskell, proposed a new law last week to license short-term and holiday-let homes in a bid to prevent turning "wonderful little communities into nightmares".
Kong said: "Coming out of lockdown, there were a lot of second-home enquiries and a lot of properties sold, but that has slowed down a touch and I would imagine that's to do with people getting a little bit nervous with regards to the cost of living, inflation and interest rates."
In a recent referendum-style poll, Whitby residents overwhelmingly approved banning the sale of all new-build properties for second homes in a non-binding vote.
Earlier this month Prime Minister Boris Johnson announced his plan to tackle the issue of home ownership in the UK by extending the Right to Buy scheme to two-and-a-half million people who rent their homes from housing associations.
The policy, which is currently only available to those who rent from councils, allows residents to purchase the property at a discounted price.
This week the Government announced a review into the impact of short-term and holiday lets in England's tourist hotspots.
The number of holiday lets in England has risen by 40 per cent in the three years to 2021, according to BBC News research.
It found the Scarborough area, which includes Whitby, had the highest number of holiday lets, rising from 2,032 in 2018 to 2,913 in 2021.