Nearly three-quarters of houses sold in January were sold for less than what may have been over-optimistic asking prices in the wake of Stamp Duty reforms, the NAEA has reported.
It said that buyers are starting to negotiate again and that the housing market is cooling in the lead-up to the general election, with supply and demand both down from levels seen throughout 2014.
NAEA member agents found that 73% of homes were sold for less than the asking price in January. This compares with January a year ago when 56% of homes sold for under the original asking price.
According to the NAEA, an average of eight houses were sold per branch in January, compared to the seasonally low five in December.
Mark Hayward, NAEA managing director, said: “The Autumn Statement’s stamp duty reforms have already created movement. Following this, sellers may have hiked up prices to take advantage of buyers’ increased budgets.
“But it seems buyers are counteracting this by negotiating prices back down.”
Supply and demand were both down at the start of the year, indicating that the market is cooling off.
Supply was down to 44 properties available per member branch, compared to an average 47 for the whole year in 2014 and 45 in December.
The number of applicants fell from 360 in December to 353 in January.
The full report is here