Tag: asking price

Will Asking Prices Fall In Property Market?

Posted on by colin_williams

At Williams of Petersfield, we want you to make informed decisions when it comes to the housing market. With many people expecting demand for homes to fall, it might be that asking prices will fall. Whatever happens next, you can rest assured we are here for you, and ready to help you make informed decisions.

According to Rightmove, as of November 2021, house prices in Petersfield are as follows;

“Properties in Petersfield had an overall average price of £507,872 over the last year.

The majority of sales in Petersfield during the last year were detached properties, selling for an average price of £746,234. Terraced properties sold for an average of £366,811, with semi-detached properties fetching £479,280.

Overall, sold prices in Petersfield over the last year were 16% up on the previous year and 16% up on the 2018 peak of £436,809.”

A study undertaken by MoveStreets highlights the following points:

  • The average asking price on major property portals stands at £296,950
  • The average sales price stands at £258,464
  • This means there is a gap of 13% or £38,486 when it comes to asking prices versus sales prices

Regional variations exist when it comes to overpricing

As you would expect, there is a bigger gap in London!

  • The average asking price stands at £833,944
  • The average sales price is £494,673
  • This is a difference of 41%, or £339,321

Other gaps across the country are as follows:

  • The South West, there is a difference of 24% between asking price and sales price
  • The South East features a difference of 23% between asking and sales price
  • In Wales, the difference between asking and sales price is 21%
  • In the East Midlands, there is a gap of 21% between the asking and sales price
  • For the North East, the gap between asking and sales price is 21%
  • In the West Midlands and the North West, there is a gap of 20% between the asking and sales price
  • Scotland stands apart, with the gap between asking and sales price standing at 4%

Adam Kamani, CEO and Co-Founder of MoveStreets, commented: “We’ve seen an incredibly hot market of late and despite the end of the stamp duty holiday, high levels of buyer demand and low levels of available stock continue to see properties fly off the shelf at pace and for a very good price. However, it’s clear that even in current conditions, many sellers are listing their homes at an over-optimistic price point, no doubt in an attempt to take advantage of the market boom.”

Adam Kamani concluded by saying; “This can be detrimental to your sale regardless of how the market is performing and can result in months of little to no interest in your home. It’s the responsibility of the listing agent to guide sellers and set these expectations. While some will value a home at a higher price point to win business, a difference of ten to hundreds of thousand pounds above market value is perhaps a little too far.”

At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.

Gap Between Asking Price And Sales Price Hits 45%

Posted on by colin_williams

There has been some discussion in the property market of late about the need to manage expectations when selling property. A lot of this is down to the fact that the asking price have been rising sharply while sales prices are coming in at a much lower level. Continue reading “Gap Between Asking Price And Sales Price Hits 45%” →

Asking Price And Sale Price Gap Shrinking In UK

Posted on by colin_williams

There are many factors to consider in the property market but in recent times, the gap between asking price and sale price has been a crucial factor for many people. Many sellers have been left disappointed with an asking price that failed to materialise and some property specialists have suggested this has been a strong factor in the dip of property being supplied to the market. If property owners believe that selling their home will not bring a sufficient or satisfactory return, they will be more likely to decide against entering the market.

In their year-end review of the property market, NAEA Propertymark stated that homes sold for less than their initial asking price 77% of the time. The organisation also said that only 4% of property sold for more than it’s initial asking price. This information correlated with findings from Zoopla dating to December of 2017 which stated that that the volume of properties selling for less than the initial asking price was increasing.

Rightmove suggests that more homes are selling for sales price

However, information provided by Rightmove in spring of 2018 suggest that an upturn has occurred with respect to sales prices and asking prices. The volume of property sold for the asking price has reached the highest level since June of 2016. Mind you, given that Rightmove said that 74% of homes still sold for less than the initial asking price for February of 2018, it may not be a cause for too much optimism just yet.

It is the percentage of properties that were sold for exactly the asking price that was the important figure though and this was classed as 22%. This would be higher than the percentage suggested by NAEA Propertymark for the whole of 2017 and it is the highest recorded figure in close to two years.

asking price

With asking prices also rising by 1.5%, which is the biggest increase for March since 2007, there is a cautious mood of optimism surrounding certain issues of the property market.

Are stamp duty changes impacting on property market and asking price?

While there are many factors influencing the property market, it appears stamp duty relief changes are having an impact on first-time buyers. In information provided by the NAEA, the January 2018 proportion of first-time buyers in the full market stood at 27% while in February of 2018, this had risen to 29%.

There are also factors that may not come across as optimistic from NAEA. The volume of property-hunters who registered at estate agents in the UK fell by 16% from January to February and by 28% from February 2017 to February 2018. As of the end of February 2018, the number of registered buyers per branch was 309. There was also a dip in the volume of properties for sale with each branch having 35 properties compared to a level of 36 each branch as of January 2018.

The ever-evolving nature of the UK property market can be difficult to stay in touch with. If you want to be confident that you are fully informed as to what is taking place in the property market, be sure to stay in touch with Williams of Petersfield. We are specialists in the local property market and no matter what change or move you may want to make, we are here to help.