OTM chief warns: We’re near the top of the market

OnTheMarket chief executive Jason Tebb is warning that we might be near the top of the market.

His portal’s latest sentiment index - which focuses on buyer and seller confidence and mover attitudes towards mortgage borrowing - found that 74 per cent of active buyers were confident that they would purchase within the next three months. And 80 per cent of sellers were confident they would sell their property within the next three months.

It also found that 53 per cent of properties were Sold Subject to Contract within 30 days of first being advertised for sale, compared with 35 per cent a year ago.

However, Tebb’s commentary warns that while the market is currently very strong, it may be on the turn.

Tebb says: “What might change over the coming months is that house price growth may start to tail off. Speculative sellers may be waiting for the top of the curve in terms of pricing before listing their homes, but history shows us that trying to time the market is a difficult feat to achieve.

“With double-digit house-price growth in 2021, it remains the best time in two decades to sell and it could be argued that it is better to do so sooner rather than later. 

“Vendors who hold off in the hope of further house price appreciation may then find themselves competing with more sellers once they list their home, with more competition meaning the inevitable downwards pressure on pricing.”

He also says: “While we are hearing that plenty of valuations are taking place, relatively few have so far turned into instructions. It is common at this time of the year for sellers of family homes to wait until spring to market their properties as they look to benefit from the seasonal boost to the look and feel of properties. 

“Agents are waiting to see whether they get the usual influx of stock as we head towards what is traditionally the busiest time of year, but there is no evidence of this yet.”

Rightmove issues its latest asking price index on Monday.