Online property listing portal Rightmove.co.uk, has released its latest look at the UK property market based on the average asking price that UK sellers are listing their property for sale at.
Rightmove claims to list 90% of all properties being sold in the UK and their index provides an indicator on current market conditions, although this is based on what properties are being listed for, rather than actual sales completions like the Land Registry house price index.
The latest index shows that sellers coming onto the market have adjusted their expectations marginally in line with the slower market conditions, with the average asking price of a property down 0.8% this month.
However, those that have already had their property listed on the market are having to reduce their asking price from what they initially listed it at. Rightmove claim 37% of sellers have had to reevaluate their property price potential, the highest number in five years.
This has largely been attributed to the tougher market conditions over the last year coupled with the recent increase in interest rates, with sellers also listing at an over-optimistic price to begin with.
These sellers may well be asking themselves if they could have saved some time and stress by pricing a lot more conservatively than an average of more than 6% ahead of what the market subsequently proved it could sustain.Miles Shipside
But other indices based on property completions have shown that UK price growth has begun to show positive signs of life, after stalling over a number of months. As we head towards the traditionally quiet Christmas period, many will be putting their property sale on the backburner until January and so a reduction in market activity is nothing to worry about, and may seem worse than it is due to sellers continuing to overprice, as CEO of eMoov and property expert Russell Quirk explains.
No huge surprise that we are seeing a large proportion of properties reducing asking prices as we head into the quieter festive period, especially given the current market conditions. But it is always recommended that sellers price their house appropriately based on the current market climate, particularly with the slowdown in price growth we have seen of late.
There have been signs of life returning to the market over the last few months, and so it is likely that some sellers may have jumped the gun a bit and priced a little too optimistically as a result.
However, we’re confident that when the market springs back to life in January we will see it continue to build momentum, with sellers once again able to price a little higher than they currently are, albeit increasing at a slow and steady rate.Russell Quirk