Average new seller asking prices continue to fall as serious sellers’ price more competitively in an attempt to attract buyers, according to Rightmove.
The data reveals that this year’s November drop is the largest in five years, indicating that new sellers are also increasingly adopting more realistic price expectations from the outset of marketing to tempt potential buyers to act.
The property portal reveals that average asking price dropped by 1.7%, or £6,088, this month to £362,143, as Christmas approaches and sellers continue to adopt more pricing realism to appeal to a purchaser.
Despite the slowdown in the housing market, the latest data key indicators point to a year that so far has been better than many predicted following the turbulent end to 2022, according to the property portal.
Rightmove’s’ Tim Bannister said: “We’d expect to see a drop in new seller asking prices in the last couple of months of the year, as serious sellers start to separate themselves from discretionary sellers and cut through the Christmas noise with an attractive price to secure a buyer.
“However, the larger than usual drop this month signals that among the usual pricing seasonality, we are starting to see more new sellers heed their agents’ advice and come to market with more enticing prices to stand out from their over-optimistic competition.”
The figures reveal that average asking prices are just 3% below May’s peak, but pricing right the first time remains key to securing a buyer.
Sales agreed are now 10% below 2019’s more normal market level, improving from 15% below last month.
The pandemic-driven stock shortage is over, with available properties for sale now just 1% behind 2019.
However, some regions and market sectors continue to transition better than others to the need for more enticing pricing: The number of sales being agreed for studio, one-, and two-bed properties is just 7% lower than 2019’s level, compared to four-bed detached houses and all five-bed plus properties, where agreed sales are 14% behind 2019.
While there are yearly price declines in the Midlands and all Southern regions, by contrast Wales, Scotland and the North of England have seen rises in the price of newly-marketed properties.
Two consecutive base rate holds has helped to keep buyer demand in line with 2019’s level. Now, many will be looking to the forthcoming Autumn Statement and hoping for more than a renewal of the mortgage guarantee scheme
Rightmove’s Tim Bannister commented: “Buyers are still out there, but for many their affordability is much reduced due to higher mortgage rates. It now looks like more sellers are understanding Rightmove’s research; that the chances of securing a buyer are much greater if they price right the first time, rather than over-pricing and reducing their price later.”
Property industry reacts to Rightmove House Price Index
