As the housing market slows, with rising inflation and higher mortgage interest rates impacting mortgage affordability, a new report highlights that less than half of the properties on the market in England and Wales are currently sold subject to status.
The report shows that only 46% of home sellers have accepted an offer, a fall of 15% from the 2022 average.
While the increase in unsold properties may offer more choice and greater negotiating power for buyers, it is not such good news for sellers.
Danny Luke, a property expert whose company has bought and sold more than 6,000 properties over the past 25 years, warned that homeowners need to be more realistic about the current property market conditions if they hope to secure a sale.
He said that many are still using a sale strategy more suited to last year’s market, which was very overheated with buyers fighting for limited stock, pushing property prices ever higher.
Luke advises that pricing needs to be less ambitious in the current market, and sellers need to be realistic about how long a sale might take.
Last year, properties were often selling before they even made it onto online portals such as Rightmove and Zoopla, with several would-be buyers competing for the property as soon as it became available. It’s now a very different story, with even highly desirable properties often sitting on the market for several weeks before finding a buyer.
The slowing speed of the market is also causing significant property chain issues. Losing a buyer now is far more likely to cause the whole property chain to collapse, as others with connected sales fear how long it might take to complete the chain for a second time.
The report shows that sellers are still feeling optimistic, with a steady supply of properties coming onto the market.
However, Luke warns that it is no longer a seller’s market, and sellers cannot take the same approach they would have done in 2022.
Estate agents are also trying to assess a changing market, so may suggest listing the property at the higher end of what it might be worth to test the market.
If sellers are keen for a quick sale, it’s best to tempt buyers with a more attractive asking price. If the property gets significant interest, the price will naturally be driven higher by competing offers.
Luke concluded: “There are still buyers out there looking to move, but sellers cannot take the same approach they would have done in 2022. It’s no longer a seller’s market.”
