Online agents ‘slightly’ increase market share…

TwentyCi’s Property and Homemover report said: “The largest market for hybrid/onlines has been consistently in the lower-value ranges as they struggle to convince higher-value sellers of the appeal of their approach. 


“This continued in the third quarter of 2022, where the share was as high as 9.4% in the Less than £200,000 category but decreased progressively in every higher category to a low of 1.2% in the £1m+ bracket.”


The report showed that the highest level of market share among hybrids and online agents was 12.4% in Yorkshire and the Humber with around 11% in the East Midlands and North West of England.


They make up just 4.8% of the market in the East of England, 4.9% in the South West and 5% in the South East.


Their share in inner London was put at 5.7%, rising to 6.7% in outer London.



simplify

The report added: “The failure to be adopted by sellers of higher-value properties will impede the hybrid/online agents in establishing a significant market share in London and the South East, where the property value and density of housing is greatest. This is borne out by the regional results.”

It comes as TwentyCi suggested downsizers may start driving the market as they sell higher value properties to avoid rising mortgage costs.


Its report suggested there might already be signs of this in a 1.3% increase in new instructions during the third quarter.


TwentyCi said most regions now have between 2.5-3 months of supply as at September 2022, up from two months last quarter. 


It suggested this could be a sign that homeowners are beginning to reassess their housing needs as prices soar.


At the peak of the pandemic demand for rural four-plus bedroom homes were at a premium, however, with rising costs homeowners could potentially be looking to scale back down to two or three-bedroom properties, TwentyCi said.

Its analysis showed sales agreed and exchanges were up by 7.7% and 6.8% respectively during the third quarter.


Price changes and withdrawals remain low with sellers continuing to find less of a need to discount or remain in their property when sales can be achieved more quickly. 


However, there has been a marked increase in fallen through transactions, up 20% during the third quarter, the report claims, hich could be a consequence of increases in interest rates and the withdrawal of mortgage offers and products indicating that the market could be coming under stress.   


At the beginning of October 2022 there were nearly 1.55m households progressing through the home-move, owner-occupied journey, TwentyCi said.


Colin Bradshaw, managing director of TwentyCi, said: “Whilst we still have not seen a recalibration of the housing market there are signs that we will start to see change. 


“However, if homeowners do look to downsize in response to the cost-of-living crisis then the number of householders in the homemoving journey will remain high. For many sectors this could provide a significant lifeline as the value of this market is significant as a result of their propensity to spend.” 




Source link

Sharing Is Caring:

Leave a Comment