Vendors are finding it increasingly difficult to get the amount of money they ask for their properties, in a further sign that the UK housing market might be coming off the boil.
Estate agents across the UK report that high demand from buyers is easing, with some home sellers now discovering they may have pitched their prices too high for the current market.
Traditionally, the sales market was known to be slower in summer as buyers and sellers turn their attention to holidaying. With lifestyle changes and travel restrictions, the last two years have defied that trend, but it seems that normality may be creeping back in.
Nathan Emerson, CEO Propertymark, commented: “For the past two years agents have seen a relentless market which defied patterns that we as practitioners had become accustomed to.
“However, this summer is seeing seasonal trends return. This cooling down is allowing the number of homes available to buy to recover, and interestingly, a subtle but telling change is in the prices being achieved.”
According to Propertymark, the number of new buyers registering per member branch in June seems to have echoed levels seen in the winter months, with more of a peak over spring. This is what estate agents would expect from a traditional market.
Supporting this trend, the average number of viewings per property has fallen from 6.2 in April to 4.4 in June – a reduction of 29%.
There were nine sales agreed on average per member branch in June – the same number as the previous two months. This figure is also in line with the pre-pandemic average for June of nine (based on 2010-2019 figures).
Nathan Emerson
Sales agreed as a percentage of stock remains high – at 33% in June. This is compared to the pre-pandemic average of 17 per cent of stock sold in the month of June between 2010 to 2019.
However, some buyers are starting to secure homes under the asking price, with 27% of branches now reporting that most sales were completed below asking price compared to a low of just 15% in March.
The research also reveals that the average number of properties available to buy per member branch was 26 in June, with the number of new instructions per member branch holding steady at 10 in June – the same figure as the past three months.
Some 72% of member branches told Propertymark that the average time from offer accepted to exchanging contracts in May was 13 weeks or more. This compares to a March figure of only 54%.
“Compared to March 2022, this month has seen a 12% increase in the number of agents reporting that the majority of their sales were agreed below asking price,” Emerson added.
SOURCE: Property Industry Eye | JULY 21, 2022 | MARC DA SILVA
Estate Agents
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