Asking prices cut on hundreds of listings per day - research

Hundreds of properties are having their asking prices cut each day, new analysis reveals as agents and sellers continue to try to entice buyers amid cooler market conditions.

Research has found that homes listed for sale within the past 30 days have been reducing in price at a rate of 137 properties per day. 

Yopa analysed the number of homes listed for sale at the end of November on Zoopla and how many of these newly listed homes have already resorted to an asking price reduction in order to secure a buyer. 

It found that of the 72,452 homes that have been listed for sale across England over the past 30 days, 6% have already had a price reduction. 

The figure equates to more than 4,000 homes, meaning that sellers have been reducing their asking price at a rate of 137 properties a day. 

Asking price reductions have been most prevalent across both the South East (936) and London (821) seeing 7% of homes listed in the last 30 days reducing in price.

This means that across both regions, homes have been reducing in value at a respective rate of 31 properties and 27 properties a day, Yopa said.

The East of England also ranks within the top three, where 6% of all properties entering the market in the last 30 days have reduced in price, equating to 19 price reduced properties per day. 

This isn’t necessarily translating into sales though, Yopa said.

Of the 4,109 homes to have seen a price reduction within 30 days of entering the market for sale, just 191 or 4.6% are already sold subject to contract or under offer.

Demand for recently listed and reduced homes is at its highest in the West Midlands, according to Yopa, but even then just 6.3% of these properties have gone under offer or sold subject to contract.

Verona Frankish, chief executive of Yopa, said: “It’s a challenging landscape for sellers at present. Higher mortgage rates have caused buyer numbers to dwindle and this has very much transferred the balance of power from seller to buyer.

“The good news is that property values have remained largely unchanged despite wider economic turbulence and so those who are able to secure a buyer are still securing a great price for their property. 

“The real issue is the time it’s taking to find a buyer in the first place and this is the driving factor causing many sellers to drop their asking price expectations in an attempt to secure a quicker sale. 

“However, as our research shows, this isn’t necessarily the key to success and less than five percent of sellers who reduce their price within the first 30 days of entering the market are actually finding a buyer. 

“Patience is certainly a virtue in the current market and we would advise those looking to sell to hold their nerve and stick it out. Research from Rightmove found that properties that are accurately priced according to market conditions find a buyer in less than half the time it takes those who enter at a higher price point and then look to reduce later down the line.”