Spring optimism is in the air as buyer and seller confidence increases, according to latest data from OnTheMarket.
With 71% of active buyers confident of making a purchase and 63% of sellers confident of securing a sale in the next three months, the ‘green shoots of the housing market are increasingly evident’, says the report.
The property sentiment index for March also found that 45% of properties were sold subject to contract within 30 days of being advertised for sale. While this is down on the 64% seen in March 2022, it does represent a ‘rebalancing of the market’ in a more measured way. It’s also up from 43% in March.
Overall, the data indicates a return to business as usual, according to OnTheMarket chief executive Jason Tebb.
“Our data suggests remarkable resilience in the face of significant macro-economic turmoil; and despite considerable headwinds, the homebuying public pressure is on,” he says.
“On the whole, it seems to be more like business as usual for the market as we head into spring. As the sun makes a more regular appearance, more properties are coming to the market looking their best, and there’s growing expectation as to what the next few months have in store.”
The 71% figure for confidence in making a purchase in the next three months has risen from 69% in February, while the 63% confident of securing a sale was up marginally from 62%.
There were some variations across the regions, with confidence in buying rising from 59% to 64% in the south east, from 63% to 65% in the West Midlands and the north west and up to 66% from 62% in Scotland.
It slipped marginally in some regions, including Wales and the south west.
And while average house prices have softened, this is in the context of an average house price rise of £17,000 seen in the last year, suggesting what we’re seeing now is more of a rebalancing rather than dented confidence.
With mortgage rates beginning to stabilise and latest Bank of England figures showing the number of mortgage approvals also moving in the right direction, all eyes will now be on inflation figures and the next base rate announcement on May 11.
Tebb adds: “There is still a need to be cautious; motivated sellers must not get carried away, but be realistic in their pricing and listen to the advice of a professional local agent, particularly if they’re keen to sell within that magic 30-day window. With buyers and sellers seemingly increasingly confident, there is plenty to be positive about.”
