Housing Market Update June 2023
Seller Sentiment - how confident were sellers in May 2023?
We can report a slight increase (0.3%) in the number of Valuations carried out for the month of May, compared with May last year. This is in line with OnTheMarket’s Sentiment Index for Wales*, showing that 66% of sellers were confident that they would sell their property within the next 3 months, a slight increase when compared to April 2023 (64%)*
Buyer Sentiment - how confident were buyers in May 2023?
Our new listings v. sales success rate for May was 97%, actually an increase of 26% compared with the same time last year. OnTheMarket reports that 71% of buyers in Wales were confident that they would purchase a property within the next 3 months, a slight increase when compared to April 2023 (68%)*
Mover attitudes towards mortgage availability in May 2023
As a Wales average, in May 2023 only 1% of movers were concerned (either very worried or slightly concerned) about securing a mortgage to fund the purchase of their next property, which hasn’t changed when comparing to April 2023 (1%)*
Time to Sold Subject to Contract (SSTC) in May 2023
In May 2023, as a Wales average 40% of properties were SSTC within 30 days of first being listed for sale, a slight increase when compared to April 2023 (39%) and a decrease when compared to May 2022 (59%)*
Most popular Wish List searches
Using data collated from OnTheMarket’s Wish List tool on OnTheMarket.com, which allows property seekers to enter features they’d like in their next property to return search results most suited to their requirements, we were able to look at the top five most popular search terms in Wales.
The top 5 most popular search terms through OnTheMarket in Wales during May*
1. Garden
2. Parking
3. Garage
4. Large Garden
5. Off-street parking
In Summary
Despite a decline in transaction numbers in UK during April, rising transaction and mortgage approval numbers in March indicated that the market had shaken off the travails of the autumn and the fallout from the mini-Budget, with house prices continuing to soften slightly and settle into a ‘new normal’. Mortgage pricing also calmed, with borrowers accepting that rates are going to be higher than has been typical over the past few years. However, it would appear that volatility in the housing market is not fully behind us, with the latest news on inflation sending Swap rates higher and increasing the price of fixed-rate mortgages once again.
That said, seller and buyer sentiment was not rocked during May. OnTheMarket’s data for May shows 71% of buyers in Wales were confident that they would purchase a property within the next 3 months, a slight increase when compared to April 2023 (68%). Regional differences demonstrate positivity even more starkly, with 75% of London buyers confident they’d purchase a property within the next three months, up from 71% in April. Seller confidence also improved, with 66% of sellers in Wales were confident that they would sell their property within the next 3 months, when compared to April 2023 (64%). Some areas demonstrated even more positivity, with 72% of Scottish sellers confident they’d sell within the next three months, up from 66% in April. 40% of properties were SSTC within 30 days of first being listed for sale in Wales, a slight increase when compared to April 2023 (39%) while only 1% of movers were concerned (either very worried or slightly concerned) about securing a mortgage to fund the purchase of their next property, no change when comparing to April 2023 (1%).
It’s no real surprise that buyer confidence is strong given that prices are softening in some areas. We could say that there’s more choice of properties than has been the case for a while and if you can afford to buy, now is a great time to make a move! Although some buyers will inevitably be worried about higher mortgage rates, there seems to be a growing realisation of the need to adapt to a new, elevated level of pricing, in place of the unsustainable rock-bottom rates of the past.
We wait to see how recent volatility pans out but what it does provide is a sense check: there are people who need or want to move, but buyers also believe prices are inflated. With offers regularly being made below asking price, pricing correctly in the first instance is crucial. We believe sellers and their agents should be having conversations, not just about pricing but about timing. If you want to move by a certain date, ask your agent about various pricing structures and how being sensitive on price can speed up the time it takes to find a buyer. When the market is in flux, pricing competitively means pricing ultra-realistically.
The fallout from the latest inflation figures may be felt more keenly in June’s data, with the impact of higher mortgage rates and potential for further base rate rises may unsettle buyers and sellers alike.. Nonetheless, there is no reason why sellers who take advice from an experienced local agent, and price realistically under their guidance cannot still achieve a timely sale.
If you would like a fresh approach to the selling of your property, or if you are not yet on the market, we are here we will be pleased to call you or arrange to meet you at a time to suit you.
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NB: If your house is presently on the open market, please do check your agency agreement to ensure that you are free and able to list your property with another agency and that you are not tied to a contract.
*OnTheMarket Property Sentiment Index | June 2023 https://plc.onthemarket.com/ps...
*OnTheMarket Property Sentiment Index | June 2023 sentiment data (Buyer sentiment, Seller sentiment and Mover attitudes towards mortgage availability) are collected via questions on the OnTheMarket website monthly. With over 80,000 total consumer responses on average per month, it is believed by OnTheMarket to be the largest monthly consumer sentiment index to date in terms of buying and selling residential property in the UK.
Data on Most Popular Property Types is drawn from OnTheMarket’s data compiled from thousands of estate agent branches and housebuilders who list their properties with the portal every month.