OnTheMarket publish their Property Sentiment Index January 2023 (covering December data)

OnTheMarket publish their Property Sentiment Index for January 2023, detailing the difference between sentiment and reality, using the data for December.

The latest survey results show the continuing rebalancing of the property market, and while December is traditionally a quieter month, 60% of properties were SSTC within 30 days of first being listed in December, an increase on 42% in November when the market was rocked by the mini-Budget fallout and up on 53% in December 21 showing the importance of pricing appropriately with the guidance of an experienced local agent to keep transactions going. 

Key points from publication – Property data:

• • 73% of active buyers in the UK were confident that they would purchase a property within the next 3 months
  • 64% of sellers in the UK were confident that they would sell their property within the next 3 months
  • 60% of properties were Sold Subject to Contract (SSTC) within 30 days of first being advertised for sale, compared with 42% in November 2022 and 53% in December 2021 
  • Experienced local agents crucial to pricing property correctly 

Key points from publication – Mortgage data: 

• • As a UK average, in December 2022 only 6% of movers were concerned (either very worried or slightly concerned) about securing a mortgage to fund the purchase of their next property, a slight increase when compared to November 2022 (4%)  
  • The West Midlands had the highest number of respondents who already had their mortgage Agreement In Principle in place prior to starting their search for a property (21%). The North East had the lowest number of respondents who already had a mortgage Agreement In Principle in place before starting their property search (13%) 
  • As a UK average, 26% of movers hadn’t considered applying for a mortgage before starting their property search, with buyers in Greater London the least likely to have considered applying for a mortgage before starting their search for a property (34%) 
  • As a UK average, 36% of buyers surveyed said that they didn’t need a mortgage in order to purchase a property. Greater London had the lowest number of respondents who indicated that they wouldn’t require a mortgage to purchase a property (23%). Scotland had the highest number of respondents who indicated that they didn’t need a mortgage to buy their next home (47%)

From analysis of OnTheMarket.com’s data compiled from estate agents’ listings across the UK, we’re able to track where properties are Sold Subject to Contract (SSTC) the quickest and where they take the longest:

• • In December 2022, as a UK average 60% of properties were SSTC within 30 days of first being listed for sale, an increase when compared with November 2022 (42%) and December 2021 (53%)
  • In December 2022, Scotland was the fastest selling region, with 51% of homes SSTC within 30 days of first being listed for sale. Greater London had the lowest number of properties which were SSTC within 30 days (29%)
  • In December 2022, the region with the most number of properties which had taken 120 days or longer to SSTC was Greater London (21%) compared to Scotland which had the lowest number of properties that had taken 120 days or more to move to SSTC status (9%)

Jason Tebb, Chief Executive Officer at OnTheMarket, comments:

“December tends to be an unusual month as far as the housing market is concerned. Those who need to move carry on regardless while those who aren’t in such a hurry may delay until spring as they enjoy the festivities.

“Yet our data shows that confidence, challenged so significantly after the drama created by the ill-fated mini-Budget, remarkably stabilised in December.

“There were concerns that transactions would grind to a halt in a high inflationary environment, yet while December is traditionally a quieter month, our data indicates that 60% of properties were SSTC within 30 days, demonstrating that motivated vendors who priced their homes accurately were still able to transact.

“This figure is a considerable improvement on 42% in November when the market was rocked by the mini-Budget fallout. This is also up on 53% the previous December, a time when the market was significantly more buoyant. 

“With 73% of buyers confident they’d purchase a property within the next three months, a slight decrease from 74% in November, and 64% of sellers confident they’d sell within the next three months, up from 63% the previous month, there is still plenty of positivity even as the inevitable rebalancing of the market continues.

“House price indices suggest that property values are nudging downwards but while there is plenty of speculation as to how far these may fall, agents are more concerned about transaction numbers. 

“There are still deals to be done and evidence suggests that serious buyers and sellers continue to engage with each other despite macro-economic headwinds. Making sure properties are priced well by taking advice from an experienced local agent who knows the local area inside and out is going to be more important than ever as the market becomes more challenging against the backdrop of a higher cost of living and rising interest rates. 

“As fixed-rate mortgage pricing continues to edge downwards with several lenders reducing rates, this may help restore positivity in the market.

“Previous expectations of base rate peaking at 6 per cent or even higher are now looking wide of the mark and with the Prime Minister vowing to bring inflation under control, buyers may be more confident that the recent mortgage rate volatility is behind us.

“It can be tempting to read too much into one set of data but if you thought nothing ever happens in December, this wasn’t the case in 2022. It demonstrates yet again that there will always be those who need to move, but properties need to be priced effectively if there is to be a realistic market for those who are serious about buying and selling in 2023.”

Kindly shared by OnTheMarket

Main article photo courtesy of Pixabay