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According to the Home Buyers Bureau (HBB), one in ten sellers lowers the asking price of their home within 30 days of going on the market to increase their chances of attracting a buyer.
HBB says it has analyzed the level of supply of properties for sale that have come on the market in the past 30 days and what percentage of those homes have already lowered their asking price since then.
The study shows that more than 85,000 homes have been listed for sale in the UK property market over the past month.
Of these new homes hitting the market, 6,215 have already lowered their asking price, meaning that 7.3% of all home sellers lowered their asking price expectations almost immediately to entice a buyer.
However, the data shows that only 5.7% of all homes have already been sold or sold under a price reduction agreement.
In the East of England, the largest number of home sellers have decided to lower their asking price, with one in ten (10.1%) homes listed for sale in the last 30 days experiencing a drop in home prices.
The South East (9.8%) and London (8.8%) are also home to some of the biggest tiers of property that fell in price within a month of going on the market, followed by the East Midlands (6.5% ). South West (5.9%) and West Midlands (5.7%).
In the more affordable regions of Yorkshire and the Humber (4.9%), the North West (4.3%) and the North East (4.1%), the rate of decline in house prices for sale in recent months is now less than 5% .
In terms of buying demand for discounted properties, the East Midlands ranks first, with 8.1% of all discounted homes listed for sale in the last 30 days already sold on contract or offer.
This demand is also strong in the South West (7%) and East of England (6.7%), while buyers are least motivated by lower property prices in the North West (3.9%) and London (4 %).
HBB Managing Director Chris Hodgkinson says: “The real estate market has been cooling for months now and we are already seeing home prices begin to normalize as the pandemic-driven market boom fades.”
“However, our research shows that many sellers can still act with some over-optimism when entering the market, forcing them to rethink their asking price expectations almost immediately.”
“At the same time, it is likely that widespread reports of lower home prices may have prompted many to lower their asking price in an attempt to find a buyer before prices fall further.”
“But when you look at the buying demand for these discounted homes, it’s clear that lowering the asking price alone isn’t enough to generate interest and sell quickly.”
“The best course of action is to always set an adequate price according to current market conditions when you first enter the market. If your home is still being sold, lowering your asking price probably won’t be the solution.
In fact, while the market is cooling, it is still holding, and we do not expect a sharp correction in house prices. So for those currently considering lowering the asking price, a little patience can go a long way.”
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