Estate agent body Propertymark has released its annual review and outlook on the UK housing market today, uncovering that 71% of estate agents believe sellers are being unrealistic in terms of achievable pricing for their properties.
Agents believe sellers are overvaluing their properties, thinking they have the best house on the street or can sell at a price which will enable their next move, not what their property is actually worth.
Agents are encouraging their sellers to think twice about if they are being realistic when listing their property for sale.
Propertymark registered agent Liana Loporto-Browne MNAEA said a four-bed terraced house in Greater London was with several other agents before it landed with her.
The original asking price of the property was £1,150,000 and had already been on the market for several months before it was reduced to £950,000 by Liana Loporto Property, selling in the same months for £925,000.
The property market in the UK’s expensive major cities can be less attractive when buyers budgets are constrained. Quieter and more affordable areas such as the North West are holding their value.
Bolton based estate agents Miller Metcalfe report 99.5% of their properties are being agreed at asking price.
Propertymark registered agent, Stuart Matthews from Miller Metcalfe Estate Agents said this month’s sales so far have taken 16% longer from instruction to sale agreed compared to last year.
Propertymark research found viewings per property had fallen 71% per cent from April to December 2022. This decline shows the cooling off in buyer demand, causing a direct effect on prices achieved.
However, the North West estate agency has seen some properties fly off the market in a matter of days due to realistic pricing and a stable base of serious buyers.
Properties in this area are low to mid- range in value with an average sold price over the last 12 months of £233,404, whilst properties in London fetched a higher average of £546,220 according to Zoopla.
The Office for National Statistics (ONS) most recent report, the UK House Price Index: November 2022, found “the North West saw the highest annual percentage change in the year to November 2022 (13.5%), while London saw the lowest (6.3%) of all English regions.”
A two-bedroom terrace house in Bury, Lancashire with the initial asking price of £127,000 was instructed on the January 4, 2023, and achieved the asking price three days later, on January 7.
Similarly, a three-bed detached property in Tyldesley, Manchester was listed with an original asking price for £319,950, instructed on the December 29, 2022, and also achieved the asking price five days later on January 3,2023.
Nathan Emerson, CEO of Propertymark comments: “The largest shift we have seen in the sales market is prices agreed, compared to normal asking prices. 2022, started as a seller’s market, and ended the year back to normality as a buyer’s market,” he said.
“The best price is usually achieved in the first four to six weeks of marketing, so we urge sellers not to compare their property to other homes on the market which may not have sold yet, and ensure they receive valuations from a qualified and accredited estate agent.”