August was a record month for new sales listings but there are signs of a market correction.
Analysis by property website Home.co.uk found there were just over 125,000 new instructions entered the UK market last month, which is 25% more than in August 2019.
This is the highest number of new listings in a single month since May 2011.
Overall, the total stock on the market is still down 7.3% annually.
The website said much of the stock for sale is being covered by pent-up demand but warned excessive supply, particularly in London where listings are up 71% annually, is risking a market correction.
Average asking prices are now up 3.8% annually to £320,190, Home.co.uk said
The research found 6% fewer properties on the market were reduced in price last month compared with August 2019 but warned the average price cut is now 8.8% higher.
Doug Shephard, director of Home.co.uk, said: “Supply shocks always trigger a period of price rediscovery.
“This is the case for any market, including the troubled London property market. Prior to the Covid-19 pandemic, the UK’s leading market looked set for a return to growth after a protracted period of price correction.
“Now, post-lockdown, with supply going through the roof, London’s prospects look hugely different.”
It all depends if this increase in supply is countered with an increase in demand – it depends if they are selling or not?
…and then ensuring you can get them to exchange jumping over the hurdles of the mortgage companies and lawyers.
These are interesting times
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In our area, record numbers of listings by agents followed now by record numbers of price reductions!
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It feels this week as if the pent up demand in Prime Central London has been satisfied and unless you present a property into the popular market (Cheep in other words) there is little interest, no foreign buyers in town but quite a few calls from other countries. Now advising investors who are selling to take a little hit now as opposed to a larger CGT hit after the budget.
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