Residential properties are taking longer to go under offer as the housing market continues to slow, according to Hamptons.
Despite the general slowdown in the sector, with the supply-demand imbalance narrowing, the estate agency says there is no “obvious signs” of a significant reduction in asking prices
According to Hamptons:
+ Last month it took 15 days on average between a buyer registering and them making their first offer on a home, the longest time recorded in any June since at least 2014. This is up from 13 days in June 2022 and just 8 days in June 2020 when the housing market picked up pace following the first Covid lockdown. First-time buyers, however, remain a little more earnest, submitting an offer 12 days on average after registering.
+ It took an average of 52 days since coming onto the market for a home to receive its first offer in June, regardless of whether it was accepted or not. This is 19 days longer than in June last year and marks the second longest time between a home coming onto the market and receiving its first offer than in any June since at least 2014, only to be exceeded during Covid. Every region saw an increase, with Wales recording the biggest year-on-year rise. However, Scotland is a bit of an outlier and only saw a 1-day increase.
+ Overall, it is taking 48 days on average for a seller in Great Britain to accept an offer, 19 days longer than in June 2022. Covid aside, this makes it the slowest time to sell in any June since 2013. It’s the mid-market that has slowed the most with the average home costing between £500k and £1m taking 28 days longer to sell than this time last year.
+ Despite rising mortgage rates, there have been no obvious signs that buyers are successfully negotiating big discounts on properties. 52% of homes sold in June across England & Wales were sold below their asking price, the same figure as the previous month. These homes sold for 4.4% below their asking price on average, a figure which has barely changed.
+ In fact, fewer mortgaged buyers had an offer accepted below the asking price last month – 51% in June, down from 52% in May. Consequently, a higher proportion of mortgaged buyers paid over the asking price as sellers remain firm on pricing.
Aneisha Beveridge, head of research at Hamptons, said: “Amidst the fragile economic backdrop and rising mortgage rates, buyers are becoming increasingly cautious. Consequently, with more choice and less competition around than last year, would-be buyers are taking longer to make an offer. Covid aside, this means it now takes longer to sell than in any June since 2013.
