It’s not often front line data from estate agents are released to potential investors but Hamptons - part of Connells - has done just that.
Hamptons market metrics are compiled using data from some 550 agency branches across Britain who form part of the Connells Group - this country’s largest agency and property services group.
These 550 branches were formerly part of the Countrywide Group, which was bought by Connells in 2021.
Aneisha Beveridge, head of research at Hamptons, says: “Amidst the fragile economic backdrop and rising mortgage rates, buyers are becoming increasingly cautious. Consequently, with more choice and less competition around than last year, would-be buyers are taking longer to make an offer.
“Covid aside, this means it now takes longer to sell than in any June since 2013.
“However, this caution isn’t necessarily translating into large discounts. While there were 19 per cent more homes on the market last month than in June 2019, most of this increase comes from the lengthening time it’s taking to sell each home.
“With 11 per cent fewer homes coming onto the market than at the same time in 2019, but only four per cent fewer prospective buyers, the supply-demand imbalance continues to keep a floor under prices.
“Furthermore, with few forced sellers in the market, most vendors are prepared to wait and see what happens in the hope that they’ll achieve a better price and a lower mortgage rate in the future. Ultimately, it’s transaction numbers that have been bearing the brunt of the slowdown as would-be sellers wait.”
Here’s the data in detail.
- Last month it took 15 days on average between a buyer registering and them making their first offer - the longest time recorded in any June since at least 2014. This is up from 13 days in June 2022 and just eight days in June 2020 when the housing market picked up pace following the first Covid lockdown. First-time buyers, however, remain a little more earnest, submitting an offer 12 days on average after registering.
- It took an average of 52 days since coming onto the market for a home to receive its first offer, regardless of whether it was accepted or not. This is 19 days longer than in June last year and marks the second longest time between a home coming onto the market and receiving its first offer than in any June since at least 2014, only to be exceeded during Covid. Every region saw an increase, with Wales recording the biggest year-on-year rise. However, Scotland is an outlier and only saw a one day increase.
- Overall, it’s taking 48 days on average for a seller in Great Britain to accept an offer, 19 days longer than in June 2022. Covid aside, this makes it the slowest time to sell in any June since 2013. It’s the mid-market that has slowed the most with the average home costing between £500,000 and £1m taking 28 days longer to sell than this time last year.
- Despite rising mortgage rates, there have been no obvious signs that buyers are successfully negotiating big discounts on properties. Some 52 per cent of homes sold in June across England & Wales were sold below their asking price, the same figure as the previous month. These homes sold for 4.4 per cent below their asking price on average, a figure which has barely changed.
- In fact, fewer mortgaged buyers had an offer accepted below the asking price last month - 51 per cent in June, down from 52 per cent in May. Consequently, a higher proportion of mortgaged buyers paid over the asking price as sellers remain firm on pricing.