Asking prices hit summer slump.

Rightmove confirms that the asking prices of new listings this month have dropped 1.9%, the largest fall in August since 2018. Rightmove has also reported that nationally the number of sales being agreed is now 15% lower than the more normal 2019.

Rightmove suggested that the “much larger than usual price drop” for this month indicates that some sellers are seizing the initiative and heeding their agents’ advice to price competitively for their current local market conditions to attract a buyer against the backdrop of holidays, cost of living pressures and higher mortgage pricing.

Lisa Smith (Sales Director) at DM & Co. Homes in Solihull, writes “We are certainly seeing that properties with motivated vendors are achieving sales at market price, this is the price buyers are prepared to pay in todays market. Those with heightened expectations are simply not attracting attention, this is a buyers market and you have to excite a buyer with valid reason - or face the inevitability of not achieving a sale.”

Tim Bannister, Rightmove’s director of property science, said: “There are still significant challenges in saving up enough for a deposit and affording higher mortgage payments, however would-be buyers are now likely to see greater property choice in their area and therefore a home more likely to suit their needs compared to during the pandemic.

“But while there is more choice there is no glut of properties for sale, with the number of available properties still lower than at this time in 2019 and homes still selling more quickly, with the average time to find a buyer now 55 days compared to 61 days in 2019.

“While a 1.9% drop in just one month seems dramatic, it’s in part an expected seasonal drop as sellers coming to market realise that they have to compromise on price due to the traditionally quieter summer holiday period. Agents report that correctly priced homes in many areas are still attracting multiple prospective buyers competing to secure them, so if buyers see a home that could be for them and they can afford it, they may still need to act fast rather than sitting back.”

If you are taking your property to market, you will fail to achieve interest if it is not priced sensibly. Do not be fooled by the price tags that you might see of other properties (especially the ones that haven’t sold!)

Discuss your sales strategy with the team at DM & Co. by getting in touch with on 0121 775 0101 or 01564 777 314 or email Lisa Smith directly by clicking here.