Property sellers are reducing prices to achieve a sale as the market slows and buyers are hindered by rising mortgage rates, according to Rightmove.
The portal says the proportion of unsold properties seeing a price reduction has increased only slightly from the pre-pandemic 7.5% in October 2019 to 8% this October. But it has doubled from the figure of 4% in the booming market at the same time last year.
Buyer demand is still performing better than it was during the more normal market of 2019, but it is clear that we have returned to a much more price-sensitive housing market after two years of a buying frenzy, Rightmove says as it releases its latest House Price Index.
During the market boom many agents said that they had to rip up the rule-book on valuing properties due to bidding wars, Rightmove says, but now they’re back in more familiar territory, and pricing right first time is even more critical to securing a quick sale.
“The frenzied market of the past two years has turned into a more normal market”
Tim Bannister, Rightmove’s director of property science, says: “The frenzied market of the past two years has turned into a more normal market more abruptly and less smoothly than we were expecting.
“It’s important to note that there isn’t a glut of unsold properties, and the average number of enquirers for the low number of available properties for sale is still over a third higher than it was back in October 2019, which is helping to prevent any price falls by more than is usual at this time of year.”