Recent data has shown that the sentiment among the housing market may be much stronger than first thought.
According to the OnTheMarket Property Sentiment Index, buyer sentiment has remained fairly consistent, 71 per cent of those asked saying they’d be confident enough to purchase a property within the next three months in November. This was down just one percent from october.
On the opposite side of the fence, seller confidence was also slightly lower, at 56 per cent compared to 58 per cent in October.
However, given the seasonal effects, with Christmas proving to be a tough time of the year for families, this data shows that both buyers and sellers aren’t losing much confidence, which is surprising given the fall in property prices.
In comments released on this company’s website, Jason Tebb, CEO of OnTheMarket, believes the data spells good news for the market. He also pointed out that the data can differ wildly, depending on the region.
He said: “Essentially, more than half of vendors believe they will sell within three months, even though this includes the festive period and January, which often gets off to a slow start.
“Regionally, there were some significant variations with a six percentage-point decrease in seller confidence in Scotland, while the East Midlands saw a seven percentage-point increase in confidence, illustrating that instead of a single, homogenous market there are many local markets, susceptible to different influences.”
The data compiled by the survey also revealed that 33 percent of properties were sold subject to contract within 30 days of first being listed for sale in November, which was down three percent from October.
This is the lowest level seen throughout the whole of 2023, which suggests supply is rising. Hubb believes this will merely provide more choice for serious buyers, while highlighting the need to price your property sensibly if you’re selling up.
“There were growing mortgage concerns among some respondents, with eight per cent very worried or slightly concerned about securing a mortgage in November compared with four per cent in October.
“This could be down to the month-on-month uptick in property prices as reported by Nationwide and Halifax, contradicting forecasters who had predicted that the market would tank.
“Those waiting for a ten per cent drop in prices may now be realising that as this hasn’t materialised, they will have to take on a bigger mortgage than they originally planned, and don’t relish doing so in a high-rate environment. However, there is good news on the mortgage front; swap rates, which underpin the pricing of fixed-rate mortgages, continue to fall.
“Lenders need to lend and continue to reduce their fixed-rate mortgages to attract new business, with two and five-year fixes now available from less than 4.5 per cent. Although borrowers must get used to a higher-rate environment, levels of confidence among buyers and sellers are surprisingly good.
“Those who want to get on with the business of moving are doing just that, and where sentiment fluctuates, it’s only by a few percentage points, demonstrating a resilient buyer and seller cohort shaking off what is happening macro-economically and simply getting on with it.
“Provided property is priced attractively, it is entirely possible to attract serious buyers.”
Whether you’re looking to buy or sell a property, you should be able to find some positivity from this data. If you’re looking to buy, with supply increasing, this means you should be able to get your new home for less than you would’ve paid in the past.
On the flip side, for sellers, it appears the huge market crash is failing to materialise, so you should be able to get something close to your asking price.
Regardless of whether you’re a buyer or a seller, if you’re going to be involved in the sale of a home then you’ll need a conveyancing solicitor. Here at Gumersalls we specialise in this area, guiding you through the process and taking care of the legal side of a property purchase or sale.
So if you’re on the lookout for a customer-focused law firm with years of experience in this area, reach out to us today as we’d be delighted to assist with your purchase or sale.