Listings taking longer to sell as market returns to ‘business as usual’

Listings appear to be taking longer to sell but buyer and seller confidence remains, OnTheMarket (OTM) claims.

The portal’s latest Property Sentiment Index shows the percentage of homes reaching sold subject to contract (SSTC) within 30 days has dropped from 50% in April 2022 to 37% last month.

The figure is slightly down from 38% in March 2023.

The percentage of homes selling within 60 days has increased from 19% to 21% between April 2022 and 2023.

Meanwhile 19% of homes reached SSTC within 150 days last month, up from 10% in April 2022.

Jason Tebb, chief executive of OnTheMarket, suggested we now live in different times.

He said: “Market conditions were very different then with double-digit price growth and the ‘race for space’ in full swing. 

“Now, a welcome element of stability has returned, with the numbers perhaps impacted by the Easter holidays and the traditional seasonal dip in the market when families are away and house hunting isn’t a priority.”

The index found that 70% of active buyers in the UK were confident that they would purchase a property within the next 3 months, while 64% of sellers in the UK were confident that they would sell, broadly in line with previous reports.

Tebb said there are usually regional variations as there’s no such thing as a uniform property market but highlights that there was little fluctuation across the country in April.”

He added: “As far as the housing market is concerned, April was all about getting back to ‘business as usual’. 

“This is the new normal, and reassuringly, it looks a lot like the old one. A level of stability has returned to the market after a period of unprecedented uncertainty created by September’s mini-Budget, which sent the price of fixed-rate mortgages soaring. 

“Inflation seems to be on the way down, albeit more slowly than hoped, and while another interest rate rise can’t be ruled out, market forecasts suggest that we’re nearing the end of these increases.”