House Price Index – Too Optimistic??
How Optimistic is Too Optimistic?
New and existing sellers react to quieter time of year by launching their own ‘Autumn Sale’ to tempt buyers.
New to the market sellers trim the asking price of property this month, albeit by a modest 0.8%
Over one- third ( 37%) of properties already on the market have reduced their asking price since first listing – the highest proportion at this time of year for five years – a sign of initial over – optimism and a tougher market.
There’s an opportunity for buyers to negotiate a good deal in the quieter run-up to Christmas, with sellers holding their ‘Autumn Sale’ on the basis to tempt buyers at this quieter time of year and in more testing market conditions. More than one in three available properties (37%) currently on Rightmove are now asking a lower price than when they first came to market, which is the highest proportion at this time of year for five years.
Those who are struggling to sell may hope that the Chancellor lends a helping hand in the forthcoming Budget and gives the market a boost by reducing Stamp Duty or at least declaring a Stamp Duty holiday for first-time buyers. However, with buyers’ finances already increasingly stretched by rising property prices in recent years, they now have to contend with the reality rather than speculation of rising base rates, up for the first time in over a decade.
Miles Shipside of Rightmove adds: “While there are still some very cheap fixed-rate mortgage deals available to protect buyers from rising mortgage rates, it has been trailed that this is only the beginning of a series of base rate rises. However, with guidance that the upper limit for now may well be around one percent, buyers who are disappointed that rates are on the up after a ten-year break should note they are still historically very cheap. Sensible pricing by more sellers, bearing in mind the stretched buyer affordability, could help buyers’ mood. This could also help to increase longer-term market activity more than just a short-term Stamp Duty holiday, which whilst it would initially make the cost of moving cheaper could also result in fewer price reductions and higher property prices. There’s no doubting that both measures together would be welcomed by buyers, although it remains to be seen if sellers chopping their prices this autumn is the only potential Christmas gift for cash-strapped home-buyers.”
Despite the potential downsides, there are also several positive aspects to selling property over Christmas. In fact, it may be possible to get a better price if your agent can guide you through the right marketing strategy. During this time period, the number of available houses for sale decreases. This reduces competition between sellers and instead increases the competition among buyers. Lovett pride ourselves on our years of experienced managers and negotiators who will have up-to-date knowledge about how the holidays could affect your chances of a fast, profitable sale. ( Use our free valuation tool online to see what you can achieve during these months)
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