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Propertymark is once again urging realtors to urge sellers to reconsider whether it is practical to put their property up for sale.
The recent drop in buyer demand has had a direct impact on home prices achieved, and trade groups say agents must get this message across to their customers.
Propertymark CEO Nathan Emerson said:
“Things priced accordingly sold out quickly, but those who have been testing the market at higher prices and are looking to match last year may need to lower their prices or accept the offer. I just noticed.
“Rising interest rates will definitely impact buyers’ overall budgets and sellers need to be realistic.”
Data provided by Propertymark last month revealed that 71% of realtors believe sellers are unrealistic when it comes to affordable pricing for their properties.
Propertymark’s annual review and UK housing market outlook suggests agents are overvaluing their properties. This is because they believe they have the best home on the street or can sell it for a price that allows for their next move, rather than the actual value of their property.
A Propertymark study found a 71% drop in views per property from April to December 2022. The slowdown is reflected in annual house price growth, which has slowed to just 1.9%, the weakest growth in three years, Halifax said yesterday.
Home prices were flat in January, but property inflation eased from 2.1% in December and plummeted from a peak of 12.5% last summer, according to Halifax’s latest house price index.
Halifax warned that the property market will continue to suffer this year as rising mortgage rates and tight household budgets take their toll.
Average UK house prices are now £281,684, £5,000 higher than 12 months ago, but £12,308 lower than August’s peak of £293,992.
Halifax Mortgages Director Kim Kinnaird said:
“This trend is likely to continue as we move into 2023 as higher borrowing costs lead to lower demand.
“Confidence could improve in the short term for those looking to get on or up the housing ladder. That should improve the affordability of buying a home over time.”
Growth slowed in most parts of the UK.
North London real estate agent Jeremy Leaf commented:
“Buyers are negotiating hard and don’t show up in these numbers, especially as a significant number are predominantly equity-driven or non-mortgage dependent.
“Looking ahead, we expect some minor price ups and downs, but no major corrections, especially now that more stock is starting to become available.”
Tom Bill, Head of UK Housing Research at Knight Frank, adds: As buyers and sellers resume planning and come to terms with the fact that fixed-rate mortgages are now in line with long-term averages, the
“While some discretionary demand is gone, most buyers have to move and are accepting the fact that the 13-year period of ultra-low interest rates is over. Prices are expected to drop by 5% this year, but are still above asking prices in some regions.
“With unemployment remaining low and inflation appearing to have peaked, it cannot be ruled out that the housing market could be astonishingly strong, as it was during the pandemic.”