Jump to content
House Price Crash Forum
Sign in to follow this  
AvidFan

Ft: Property Sellers Cut Asking Prices

Recommended Posts

http://www.ft.com/cms/s/2/a481f91c-e741-11df-880d-00144feab49a.html

Property sellers cut asking prices

By Lucy Warwick-Ching

Published: November 3 2010 12:13

Homeowners are reducing their asking prices in reaction to a stagnating housing market, according to new research.

Property website Zoopla.co.uk said the number of properties for sale in the UK that have reduced their for sale price at least once since coming to the market has climbed by more than 13 per cent over the past three months – up from 32.2 per cent in August to 36.4 per cent today.

The figures also show that the total value of the house price discounts has risen by almost £500m over the last three months as owners have started to get both more realistic and desperate to sell.

For those properties that have been reduced in price, the average discount currently stands at 6.1 per cent, or around £15,879, of the original asking price, according to Zoopla.co.uk.

Towns in the West and the Midlands have seen the highest number of asking price reductions. Swindon tops the list where 49 per cent of all properties currently on the market for sale have been discounted by the seller from the original price. Norwich is in second place with 46.8 per cent of properties having been reduced in price, followed closely by Bournemouth at 45.9 per cent.

However, the North dominates the list of places with the highest average asking price reductions. The largest discounts are currently to be found in Manchester where price reductions average 7.15 per cent, followed by Newcastle and Milton Keynes.

At the other end of the scale, the lowest asking price movements are in the South, with average asking prices in Poole and Swindon both down only 5.1 per cent, followed closely by London where the average home has only been reduced in price by 5.2 per cent since coming onto the market.

At the top end of the market, for properties listed for sale at over £1m, the percentage of properties that have been reduced in price has grown by more than 26 per cent over the past 3 months, up from 22.5 per cent in August, to 28.4 per cent today. And the average discount in this price bracket now stands at 8 per cent.

“For the past few months, asking prices have been somewhat out of kilter with what buyers are prepared or can afford to pay, but sellers are becoming increasingly realistic,” said Nicholas Leeming, commercial director of Zoopla.co.uk.

“The traditional New Year influx of properties coming to the market for sale will mean even more competition among sellers and many are keen to try to secure a buyer this side of Christmas and are lowering their expectations accordingly. As a result, now is a great time for buyers to try to land a bargain.”

The research followed news earlier this week from Hometrack that faltering demand and rising supply has pushed the average value of a house down by 0.9 per cent to £156,200 in October, marking the fourth month of falling prices. The Nationwide House price index also reported a 0.7 per cent fall in October.

Edited: Fits with what I'm seeing in the Midlands. 10-15K off a 160K house with another 10K if it doesn't sell.

Edited by AvidFan

Share this post


Link to post
Share on other sites

http://www.telegraph.co.uk/finance/personalfinance/8107522/Home-owners-forced-to-cut-asking-prices-by-15000.html

Home owners forced to cut asking prices by £15,000

Home owners are being forced to cut more than £15,000 off the asking price of their properties to secure a sale, figures released today reveal.

They are reducing prices by 6 per cent, while the number of sellers dropping prices at least once since putting their property for sale has increased by 13 per cent to 36 per cent since the summer, the property website Zoopla said.

It is a sharp turnaround since the beginning of the year when many areas saw a mini property boom due to a lack of affordable properties.

A greater supply of homes for sale and concerns about the economy have helped to push prices down.

Nicholas Leeming, commercial director of Zoopla.co.uk, said, "For the past few months, asking prices have been somewhat out of kilter with what buyers are prepared or can afford to pay, but sellers are becoming increasingly realistic.

The traditional New Year influx of properties coming to the market for sale will mean even more competition among sellers and many are keen to try to secure a buyer this side of Christmas and are lowering their expectations accordingly.”

The figures also show that the total value of the house price discounts has risen by almost £500 million in the last three months as owners become more realistic about values.

Towns in the West and the Midlands are seeing the highest number of asking price reductions. Swindon tops the list where half of all properties currently on the market for sale have been discounted by the seller from the original price.

Norwich is in second place with 46.8 per cent of properties having been reduced in price, followed closely by Bournemouth at 45.9 per cent.

The North dominates the list of places with the highest average asking price reductions. The largest discounts are currently to be found in Manchester where price reductions average 7.15 per cent, followed by Newcastle at 7.13 per cent and Milton Keynes at 7.04 per cent. A

The lowest asking price movements are in the South, with average asking prices in Poole and Swindon both down only 5.1 per cent, followed closely by London where the average home has only been reduced in price by 5.2 per cent since coming onto the market.

Edited by Caveat Mortgagor

Share this post


Link to post
Share on other sites

Why would they have to cut asking prices if the Market is stagnating?

The Market is FALLING! Idiots.

:lol: too true.

They seem too scared to use the correct wording, such as "falling", or even "crashing".

Share this post


Link to post
Share on other sites

FWIW, my area (London N2) has recently seen a few more properties come to the market and only this morning, Property Bee flagged up loads of reductions and 'AVAILABLE' where previously 'SSTC' - and I've been sceptical about how quickly we'd see reductions around here (nice North London suburb)...looks like serious sellers are realsiing the recovery is fast turning into a double dip and reducing at last. Fear phase locked in. Denial is well and truly over for all but the dreamers... :)

Share this post


Link to post
Share on other sites

FWIW, my area (London N2) has recently seen a few more properties come to the market and only this morning, Property Bee flagged up loads of reductions and 'AVAILABLE' where previously 'SSTC' - and I've been sceptical about how quickly we'd see reductions around here (nice North London suburb)...looks like serious sellers are realsiing the recovery is fast turning into a double dip and reducing at last. Fear phase locked in. Denial is well and truly over for all but the dreamers... :)

"My name is Sibley, and I am a propoholic"

Share this post


Link to post
Share on other sites

Very interesting. I've been looking at a range of properties using Property Bee in my locale for the first time in a long while. Some of the reductions are startling.

Decent detached 4 bed houses in my area are really in the £600k range, these are not particularly grand places, actually generally under 2000 sq ft, more often around 1700+ There are some stonking reductions £650k-599 is common. Many of the larger drops are on really overpriced properties, ie Bungalow with odd shaped rooms and plot about 1600 sq ft initially on for £600k ish now down to 499k but still way too much for an idiosyncratic property... though in a really gorgeous location.

If these actually feed through to sales I'd say some big drops are on the way.

Share this post


Link to post
Share on other sites

Here's a better take on it:

Housing market loses £500m as 'desperate' sellers slash prices amid fears of another property plunge

By BECKY BARROW

Last updated at 4:48 PM on 3rd November 2010

http://www.dailymail.co.uk/news/article-1326295/Housing-market-loses-500m-sellers-slash-prices-amid-fears-property-plunge.html?ito=feeds-newsxml

Thanks Becky :)

Share this post


Link to post
Share on other sites

As Rightmove figures for September showed an increase in asking prices, I wonder if these new reduced asking prices will be reflected in Rightmoves figures for October?

No it won't as rightmove uses only initial asking prices for it's index. No reductions.

Share this post


Link to post
Share on other sites

"My name is Sibley, and I am a propoholic"

Yes, when I said my area was finally seeing price falls in line with the rest of the UK, I expect Maidstone to remain firmly in 10% YoY positive growth territory... <_<

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.