Nearly three-quarters of homes selling for under asking price

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

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3 Comments

  1. Lance Trendall

    This is not evidence of ‘the market cooling’ it is more likely that agents have been pushing prices up faster than they have been rising. It is what usually happens when agents are in competition for high demand instructions. Buyers are always discerning and they will negotiate if process are too high. Evidence of a cooling market is a lack of buyers.

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  2. RealAgent

    I agree with Lance. What these figures actually show is, against the background of a cap for instructions, more agents adopting the “Foxtons” strategy of valuing high to win an instruction then reducing the price or seeking offers. There has been no cooling of the market in South, in fact the very opposite.

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  3. Robert May

    A Professional Estate Agent ought to be pitching asking prices so  that near on 100% of properties are sold  fractionally below their asking price.

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