The common theme over the last month seems to be the resistance to lower. Inflation maintained at over 10% thanks in the main to food prices, interest rates managed to squeeze in another 0.25% rise, and some property sellers expectations are still focussed on unrealistic values.
It is true that the market has maintained a healthy status this year but the gap between purchaser power and seller expectations has grown. Money management has become much more important to prospective buyers whilst sellers asking price expectations are still set firmly at the top of the range.
Market analysis from The Benham and Reeves Property Matrix Review, which takes into account how the average house price sits in relation to mortgage approved house prices, seller expectation (via Rightmove House Price Index) and property sold prices from the UK House Price Index, has highlighted the biggest gap between buyer and seller expectations since the beginning of the pandemic.
This suggests that not only are buyers treading with more caution due to the higher cost of borrowing but sellers are struggling to come to terms with the cooling market after the chaos of the Covid market. The gap between average sold prices (£290,000) and average asking prices (£365,000) across the UK shows a 20% difference. Highlighting both the popularity and affordability of a lower priced property but also the expectation differences on both sides of the market.
We are in a moment where sellers are having to seriously think about the levels they are coming to the market at. The ultimate goal is to agree a successful sale on their property and marketing at a suitable price, not one guided by past markets, is the best way to achieve this. You wouldn’t market your property lower on the way out of a recession so why market higher in a market that has levelled off.
By speaking to a local expert you can be confident that you are being given the correct advice and guidance in relation to the property market we are experiencing. Contact our offices to arrange a meeting with one of our experienced property valuers.