137 properties a day have the asking price slashed

137 properties a day have the asking price slashed

0:03 AM, 8th December 2023, About 5 months ago

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Property investors will be interested in the latest research that reveals home sellers are cutting their asking prices at a rate of 137 properties a day in England, as they try to attract buyers in a cooler market.

The survey from national estate agency Yopa is based on data from Zoopla and of the homes listed for sale over the last 30 days and how many of these homes have already resorted to reducing the asking price.

The results show that out of the 72,452 homes that have been listed for sale, 6% of these properties, or 4,109 homes, have already seen a price reduction.

These price cuts have been most prevalent in the more expensive regions of the market, with both the South East and London seeing 7% of homes reducing in price – or 31 and 27 properties a day, respectively.

‘Transferred the balance of power from seller to buyer’

Yopa’s chief executive, Verona Frankish, said: “It’s a challenging landscape for sellers at present. Higher mortgage rates have caused buyer numbers to dwindle, and this has very much transferred the balance of power from seller to buyer.

“The good news is that property values have remained largely unchanged despite wider economic turbulence and so those who are able to secure a buyer are still securing a great price for their property.

“The real issue is the time it’s taking to find a buyer in the first place, and this is the driving factor causing many sellers to drop their asking price expectations in an attempt to secure a quicker sale.”

Properties have reduced in price

The East of England also ranks within the top three with 6% of all properties entering the market in the last 30 days have reduced in price, equating to 19 price-reduced properties per day.

However, the study also reveals that reducing the asking price does not necessarily result in a quicker sale.

Of the 4,109 homes that have seen a price reduction, only 191, or 4.6%, are already sold subject to contract or under offer.

The demand for recently listed and reduced homes is at its highest in the West Midlands, but even then, just 6.3% of these properties have gone under offer or sold subject to contract.

5% of sellers who cut prices find a buyer

Ms Frankish said: “As our research shows, this isn’t necessarily the key to success and less than 5% of sellers who reduce their price within the first 30 days of entering the market are actually finding a buyer.

“Patience is certainly a virtue in the current market and we would advise those looking to sell to hold their nerve and stick it out. Previous research from Rightmove found that properties that are accurately priced according to market conditions find a buyer in less than half the time it takes those who enter at a higher price point and then look to reduce later down the line.”

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