Biggest asking prices fall since 2018 as ‘sellers listen to agents’
Average new seller asking prices have fallen by 1.9% to £364,895 as summer sellers tempt buyers preoccupied by inflation and interest rates.
The average asking price of newly marketed properties has dropped 1.9% to £364,895 – the biggest drop in asking prices at this time of year since 2018, figures from Rightmove reveal today.
Rightmove says that the much larger than usual price drop indicates that some sellers are heeding agents’ advice to price competitively for local market conditions.
IMPROVED AFFORDABILITY
These lower asking prices, combined with increasing average earnings and the apparent downward trend of mortgage rates are tentative steps towards improved buyer affordability, although average prices are still £59,000 (19%) higher than in the pre-pandemic market of August 2019
Tim Bannister, Rightmove’s Director of Property Science, says: “Would-be buyers are now likely to see greater property choice in their area and therefore a home more likely to suit their needs compared to during the pandemic.
“But while there is more choice there is no glut of properties for sale, with the number of available properties still lower than at this time in 2019 and homes still selling more quickly, with the average time to find a buyer now 55 days compared to 61 days in 2019.”
And he adds: “Our analysis shows that homes that are priced right the first time, rather than priced too high only to be reduced later, are not only more likely to find a buyer, but more likely to find a buyer quickly.
“This supports local agent reports of a two-speed market, with some properties for sale being overpriced and at risk of going stale, and many competitively priced homes which are attracting multiple prospective buyers.
“The lower level of agreed sales compared to this time in 2019 indicates the affordability challenges that many buyers currently face.”
TWO-SPEED MARKET
Vicki Foreman, Associate Partner at Brown & Co in Norfolk, says: “It really is a two-speed market right now.
Brown & Co
“In the current price-sensitive market, homes which are overpriced compared to local trends really stand out from the crowd for the wrong reasons and have the real risk of going stale or may have already done so.
“Pricing right really is key – get it right from the start and sellers could be looking at several prospective buyers to choose from. If sellers are too overoptimistic at the beginning, it can be difficult to regain interest in the property even when inevitably reduced in price later.”
And Mike Cole, Group Managing Director at Imagine Group, adds: “Interest rate rises are the number one factor that everyone is aware of but there are other issues, including the length of the time getting transactions through.
“Conveyancing, like many industries, is having recruitment challenges and a shortage of numbers is slowing things down. Sellers need to be realistic about the current market climate and price accordingly if they hope to find a buyer, otherwise they are likely to be left waiting.”
