Sellers cut asking prices as market slows

Posted on July 18th, 2011 | Categories - House Prices

A new survey by Rightmove has shown that buyers are starting to drop asking prices.

As a result of the stagnant housing market Rightmove have found that asking prices have dropped by 1.6% over the last month, this equates to £3,797 on an average property.

It seems there is also a significant difference between the average asking price and the average sale price. The average asking price of £236,597 is considerably higher than the average selling price, which is £203,528 according to the Department for Communities and Local Government (DCLG).

The figures suggest that either estate agents are over valuing property in the hope that it will sell for a higher price or buyers are driving a hard bargain in the knowledge that the market is slow and buyers scarce. Either way sellers are having a tough time, according to Rightmove 70% of houses which have been put up for sale this year are yet to find a buyer.

“Many equity-poor aspiring sellers will be trapped in their current homes, either unable to come to market or stuck on the market and unable to reduce to a price that will attract buyer interest,” explained Miles Shipside of Rightmove.

“With seven out of ten properties marketed so far this year still on the market, sellers in the second half of 2011 need to do something different to promote their property and increase their chances of catching those elusive buyers”.