Sellers in shock as asking prices fall to new lows
As fears regarding Brexit continue to affect the housing market, sellers are finding themselves having to continually reduce their asking prices in order to entice buyers – leading to the weakest market growth since 2010.
Whether you need to sell your house fast, or are happy to wait until the right offer comes along, all vendors are desperate to get the highest price for their home. Unfortunately, things don’t always work out that way, as changes within the economy as well as differing levels of enthusiasm from buyers throughout the year can force a seller to reduce their asking price to ensure a sale.
Thanks to the public insecurity regarding the upcoming Brexit deadline, along with growing levels of poverty as a result of the austerity measures introduced by the Tory government over the last eight years, the housing market is struggling to maintain momentum – and it appears to be the vendors that are bearing the brunt of the situation.
According to property portal Rightmove, the asking price of a UK home dropped by 3.2% between October and December, and consequently, house prices for the entire of 2018 only rose by 0.7% – far below the 2% per annum rise the majority of surveyors and valuers would expect in a healthy economy.
Certain government officials have voiced their concerns regarding the falling housing values and the knock-on effects that could arise if more homeowners decide to stay-put, instead or sizing up or down.
For example, industries that rely on new homeowners for their profits – such as DIY retailers and curtain, carpet and furniture manufacturers – could face a slowdown that would be unprecedented.
The fall in sold house prices appears to be centred around the south and south-east, where housing has become unaffordable for all but the most affluent individuals in recent years. With the capital facing many potential setbacks in the upcoming months, however, as an increasing number of businesses threaten to relocate their headquarters elsewhere in Europe if no trade deal is in place by March 29th, those who have bought in the last 12 months in the worse affected areas may find themselves in negative equity as values slump.
“It’s usual for new-to-the-market sellers to price lower in the run-up to Christmas to tempt distracted buyers, so we should not read too much into the mere fact of two consecutive monthly falls,” said Miles Shipside, a Rightmove director and housing market analyst.
“However, these falls have been larger than usual, making this the largest fall over two months for six years, showing that there are more than just seasonal forces at play.”
It is, nevertheless, important to remember that if you do need to sell your house in as shorter time as possible, it is always worth contacting National Homebuyers who are willing to buy any house, regardless of market strength or condition.
Not getting the asking price you’re looking for? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.