Rightmove has reported that average new seller asking prices fell by 1.7% (-£6,088) over the past month to £362,143.
Though the transition from the frenzied pandemic market back towards more normal activity levels has been slow, Rightmove said that key indicators point to a year that so far has been better than many predicted following the turbulent end to 2022.
For example, average asking prices are just 3% below May’s peak, but pricing right the first time remains key to securing a buyer. In addition, sales agreed are now 10% below 2019’s more normal market level, improving from 15% below last month. Meanwhile, Rightmove said the “pandemic-driven stock shortage” is over, with available properties for sale now just 1% behind 2019.
The number of sales being agreed for studio, one-, and two-bed properties is just 7% lower than 2019’s level, compared to four-bed detached houses and all five-bed plus properties, where agreed sales are 14% behind 2019.
While there are yearly price declines in the Midlands and all Southern regions, by contrast Wales, Scotland and the North of England have seen rises in the price of newly-marketed properties.
Tim Bannister Rightmove’s director of property science, said: “We’d expect to see a drop in new seller asking prices in the last couple of months of the year, as serious sellers start to separate themselves from discretionary sellers and cut through the Christmas noise with an attractive price to secure a buyer. However, the larger than usual drop this month signals that among the usual pricing seasonality, we are starting to see more new sellers heed their agents’ advice and come to market with more enticing prices to stand out from their over-optimistic competition.
“Buyers are still out there, but for many their affordability is much reduced due to higher mortgage rates. It now looks like more sellers are understanding Rightmove’s research; that the chances of securing a buyer are much greater if they price right the first time, rather than over-pricing and reducing their price later.”