One in 10 'over-optimistic' sellers forced to cut asking price within a month

Since the end of last year, rising inflation and interest rates have caused demand for homes to weaken, levelling the playfield between buyers and sellers as the market continues to cool. However, it seems that this fact has escaped the attention of some 'over-optimistic' sellers.

Related topics:  House Prices,  Sellers,  Housing Market
Property | Reporter
10th March 2023
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"Many sellers may still be acting with a degree of over-optimism when entering the market and this is forcing them to have an almost immediate rethink where their asking price expectations are concerned"

The latest research by property purchasing specialist, House Buyer Bureau, analysed the level of property for sale stock to have reached the market in the last 30 days and what percentage of these homes had already reduced their asking price since doing so.

The research shows that over 85,000 homes have been listed for sale over the last month across the property market in England.

Of these new homes to hit the market, 6,215 had already reduced their asking price, meaning that 7.3% of all home sellers have almost immediately slashed their asking price expectations in order to entice a buyer.

Unfortunately, even the opportunity of a discounted purchase doesn’t seem to be swaying buyers at present, with just 5.7% of all homes to have seen a price reduction already under offer or sold subject to contract.

The East of England has seen the largest level of home sellers opt to reduce their asking price, with one in 10 (10.1%) homes listed in the last 30 days seeing a house price reduction.

The South East (9.8%) and London (8.8%) are also home to some of the largest levels of properties reducing their price within a month of entering the market, followed by the East Midlands (6.5%). South West (5.9%) and West Midlands (5.7%).

Across the more affordable regions of Yorkshire and the Humber (4.9%), the North West (4.3%) and North East (4.1%), the level of house price reductions on homes listed within the last months currently sits below 5%.

In terms of buyer demand for discounted property, the East Midlands sits top, with 8.1% of all price-reduced homes listed within the last 30 days already sold subject to contract or under offer.

This demand is also high in the South West (7%) and East of England (6.7%), whereas buyers are least motivated by a property price reduction in the North West (3.9%) and London (4%).

Chris Hodgkinson, Managing Director of House Buyer Bureau, commented: “The property market has been cooling for some months now and we’ve already seen house prices start to normalise as the pandemic market boom fades into memory.

"However, as our research shows, many sellers may still be acting with a degree of over-optimism when entering the market and this is forcing them to have an almost immediate rethink where their asking price expectations are concerned.

"At the same time, it’s likely that widespread reports of declining house prices may have spurred many to lower their asking price in an attempt to secure a buyer before prices fall any further. But when looking at buyer demand for these reduced-price homes, it’s clear that a reduction in asking price alone is not enough to boost interest and manufacture a quick sale.

"The best course of action is always to price appropriately and in line with current market conditions when first entering the market. If your home is still struggling to sell, slashing your asking price probably isn’t going to be the answer.

"In fact, while the market is cooling, it’s still holding firm, and we don’t expect to see any drastic correction where house prices are concerned. So for those currently considering an asking price reduction, a little patience could see you far better off in the long term.”

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