Blog
Property Sentiment remains strong
Monday, October 23, 2023
Headlines from On the Market’s October Property Sentiment Index (reporting on September data) show a housing market that is holding up as the interest rate hold added some welcome stability for homeowners and buyers alike. 74% of active UK buyers were confident of purchasing a property within the next 3 months while 61% of UK vendors were confident that they would sell their property within the next 3 months. So no major shift in sentiment among buyers and sellers in September; those motivated to proceed just simply got on with it.
And 37% of properties were Sold Subject to Contract (SSTC) within 30 days of being advertised for sale. Properties which are priced sensibly are attracting buyers within a sensible timeframe and lenders are keen to put mortgage deals together with reduced fixed-rate mortgages and greater flexibility on criteria, better loan-to-income multiples to help with affordability. So an improved picture all round, with anticipation that rates will hold at the Bank’s November meeting, assuming no inflation figure surprises.
Motivated buyers are still property hunting with intent, and vendors should price sensitively, taking professional advice on the local market from an experienced local agent. This is echoed by Tim Bannister’s (Rightmove) comments. “In a market that agents describe as the most price-sensitive ever, buyers are likely to be on the look-out for homes that they feel represent excellent value, and to attract one of these motivated buyers, sellers need to price right first time. If similar nearby properties for sale appear overpriced, serious sellers have an opportunity to stand out from the crowd with a more competitive price and attract immediate buyer interest that our research shows significantly increases the likelihood of finding a buyer.” Rightmove continues, “Accurately priced properties succeed in finding a buyer in less than half the time that it takes those that need a reduction, and when they do find a buyer, the sale is also 50% less likely to fall through. This highlights the importance for serious sellers of working with a local estate agent to get the price right first time, rather than testing a higher price and mistakenly thinking that they can just reduce later without damaging their chances of a sale.”
For professional advice and a free, no-obligation appraisal of your property, whether for sale or to let, please contact your local Frost office.
