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First week back: sales and instructions boom, but nervous vendors drop prices

Research by TwentyCI reveals a 'huge surge' in activity as stalled sales completed and new moves were initiated, but first indicators of a price correction are also highlighted.

Nigel Lewis

property sales

It was an hectic few days by anyone’s measure, but the extraordinary property sales data for last week has now been published including a surge in instruction and sales, but high levels of price reductions.

Consultancy TwencyCI says the first four days after the lockdown saw 7,897 new instructions as well as 4,640 sales subject to contract.

But the fragile nature of the market despite the spurt in property sales activity is also clear to see.

TwentyCI says there were also 4,244 price reductions during the four days as vendors attempted to attract offers as well as 4,677 fall-through, a consequence of many chains breaking under the strain of Coronavirus.

Proptech and housing market analyst Andrew Stanton says the fall-throughs are likely to be down to both old offers being withdrawn as some buyers realise there may soon be bargains to be had, as well as vendors and buyers withdrawing over job and financial insecurity.

Referring to the price reductions, Stanton says: “May is seasonally a Spring market, a time that vendors are bullish about selling at maximum value, often reducing prices in Autumn or later, so is this a sign of a ‘fire sale mentality,’ as vendors cut and run before the market slows?” he says.

The figures have been released by TwentyCI as it launches a free prospecting tool for agents with fewer than five branches.

“Now is the time to ensure that you’re talking to engaged sellers who are keen to get moving, but who may well be dissatisfied with the service they’ve received from their current agent over the past few weeks,” a spokesperson says.

Read more about the post-lockdown market.

May 20, 2020

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