Street.co.uk’s latest market report indicates a 26% rise in the number of properties slashing their prices during the third quarter of 2023 (July-September).
This figure is in contrast to the five-year average. Yet, it’s notable that the increase is significantly lower than the 50% jump seen in Q2 of the same year.
When the seasonal influence is taken out of the equation, a steady trend emerges showing a decline in properties lowering their prices. This suggests sellers are now aligning with new market conditions and are pricing their properties realistically from the beginning.
Heather Staff, co-founder of Street.co.uk, said: “The main drivers for price reductions are the South East and East regions. The South East, in particular, stands out with over half of the monthly listings experiencing price drops. In contrast, the North of England, specifically the North East, experienced far fewer price reductions per listing, with 38% of listings reduced this quarter.”
Staff went on to add: “Looking forward, these trends in property price reductions provide valuable insights into where the market is heading in the future. The decreasing gap between current and average reduction volumes may indicate a move to a more stable, but subdued market. The regional disparities emphasise the importance of considering local factors in property market analysis.”
She also noted the seasonal influence on the market, stating: “As the market transitions into autumn and winter, properties tend to stay on the market for slightly longer. This seasonality contributes to the overall increase in time on the market.”
The research highlights a noticeable delay in property sales times. Currently, properties are lingering on the market for 19 days longer than they did during the same period in the previous year, with the UK average now at 48 days.
The dynamics of the property market are visibly slowing. In September, the proportion of properties being snapped up within four weeks reached its lowest since January. The trend seems typical for the time of year, albeit at a subdued level compared to previous years.
Thomson Staff, co-founder of Street.co.uk, added: “One significant consequence of the decline in properties selling within the first month is the increase in price reductions. As fewer properties sell quickly, many agents are taking action to generate interest in their listings. We can expect price reduction volumes to remain high as agents try to keep properties attractive to prospective buyers in a market where quick sales are becoming less common.”
He further said” “The likelihood of properties selling within a month is expected to decrease further as the year progresses, with the usual upturn expected in the new year. However, it’s important to note that we shouldn’t anticipate a return to when over 60% of properties sold within a month.”
Staff concluded by highlighting a shift in the market’s pace: “Recent years have seen a faster-paced market that puts buyers at a disadvantage. With the market now favouring buyers, we can expect sales agreed to occur at a more relaxed pace, allowing them to shop around more than in previous years. Hopefully, this will result in fewer sales falling through, as sales agreed are more thought out before an offer is made.”
