Selling sentiment has climbed to an all-time high, according to the latest Halifax Market Confidence Tracker.
The number of consumers convinced that the next 12 months will be the best time to sell a property has reached its highest level since records started in April 2011. The tracker stood at net +33 points in March 2015, compared to +27 in February and +24 in March 2014.
At the same time, the proportion of people who believe now it is a good time to buy has dropped. In March, the index measuring buying sentiment stood at +26, down from +35 in February 2015 and +34 in March 2014.
Although house prices continue to cool, consumer optimism about price growth in the future has recovered in March (+64) and was higher than a month ago (+60). The index was a bit lower than in March last year (+65).
House price confidence in March was also the highest since July 2014, the figures show.
Raising a deposit remains the top concern of people looking to buy a home, as 61 per cent of them say that is the biggest barrier to homeownership. Concerns about job security also rank high as 44 per cent of consumers say this is an obstacle to buying a home. Compared to year ago though, people’s worries over deposits (60 per cent) have increased while they are less worried about job security (51 per cent).
Craig McKinlay, mortgages director at Halifax, commented:
“We’ve seen a strong start to the year in terms of the net sentiment regarding the outlook for the housing market, and this has translated into an increase in transaction volumes. This increase in optimism is likely to be the result of a combination of factors, including the improving economic figures, greater numbers of higher loan to value mortgages, and extremely competitive mortgage rates.
“The results highlight that an increasing number of consumers believe interest rates will begin to rise in the next 12 months, but at the same time it is falling as a perceived barrier to homeownership. This is perhaps a result of rising incomes and the current low mortgages rates. The fact that consumers’ ability to raise a deposit remains the greatest perceived barrier to homeownership shows there is more work to be done in terms of letting people know what support is now available.”
