Right-priced homes attracting motivated buyers
There remains strong demand for homes, with right-priced homes still attracting motivated buyers, reports Rightmove in its latest House Price Index published this week.
Preston Baker would agree with this; sales are strong and we have sold as many homes as we have listed this month.
Rightmove reports that buyer demand is 3% up on 2019, with homes that are priced correctly selling.
The price of property coming to market has fallen by an average of 0.2% (-£905) this month, marginally down on the 0% norm for this time of year, as new sellers alter their price expectations in line with rising mortgage costs and increasing buyer affordability constraints.
Importance of pricing correctly at the outset
Rightmove stresses the importance of pricing correctly at the outset, with its research showing the dangers of sellers over-pricing. It reports that properties needing a reduction in asking price are more than 10% less likely to get a buyer than those priced correctly at the start.
“The interest-rate brakes being applied more strongly to slow the economy are now beginning to bite in the housing market,” said Rightmove’s Director of Property Science, Tim Bannister.
“While prices and sales bounced back this year much more strongly than most expected, the unexpectedly stubborn inflation figures and the surprise of further mortgage rate rises when many felt that they had stabilised, have contributed to the fall in prices and number of sales agreed.
“However, buyer demand remains resilient at 3% above 2019’s more normal market levels, buoyed by a shortage of quality property for sale and ongoing housing needs. First-time buyers, trader-uppers and downsizers with higher deposits and lower mortgage requirements appear to be still keenly searching the market, not wanting to miss out on the right property that is not over-priced and that they can still afford.”
“Large volume of motivated buyers”
Tim added: “The continuing twists and turns of persistent inflation and higher mortgage rates have posed some additional challenges for the market. Agents report that some movers are pausing until there is more certainty that mortgage rates have stabilised, as well as reviewing how higher costs affect their plans. However, there remains a large volume of motivated buyers who can factor rate rises into their budgets and are continuing to enquire about homes for sale, which is keeping the market functioning, albeit now with lower sales levels than at this time in 2019. Sellers who price right the first time, rather than starting with too high an asking price only to reduce later, have a much better chance of attracting one of these motivated buyers, and a good local agent will provide sellers with accurate evidence of prices that are being achieved in their area.”
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