price reductions attract family movers

A drop in new seller asking prices is attracting family movers back into the market.

Figures released by Rightmove show average new vendor asking prices have dropped by 1.9 per cent (£6,996) this month to a little over £355,000.

Although the market traditionally sees a fall in December as those who come to market at this time of year are keen to sell quickly and price accordingly, this year’s drop is larger than the 20-year average of 1.5 per cent, as sellers generally react to market conditions by pricing more competitively.

Ben Furnell of Furnell Residential, said: “There is no doubt that the market is still extremely price sensitive and if home owners are keen to sell then they must price realistically.

“The previous tactic of pricing high and then introducing reductions further down the line is no longer the appropriate course of action as potential buyers can be put off very quickly and are then hard to re-engage.

“At Furnell we pride ourselves in using our extensive knowledge of the local market to give the best advice and a realistic valuation in order to attract buyers. The agent giving the highest valuation is rarely the best option when the market is challenging.”

The signs are that the stabilisation in the market will see more family movers return, many of whom put their plans on hold due to the fallout from the mini-budget during Liz Truss’s short premiership and general economic uncertainty.

Looking ahead to next year, Rightmove predicts that new seller asking prices will drop nationally by an average of 1 per cent, caused by further competitive pricing from sellers keen to achieve a sale at a time when buyer affordability remains an issue.

“The general performance in 2023 and the outlook for 2024 is less gloomy than some industry experts predicted earlier in the year,” said Ben Furnell. “Mortgage rates are on a downward trajectory which is a positive trend to take into the New Year and may encourage potential movers to take action and capitalise on the traditional post-Christmas upturn.”

Furnell Residential is a family owned estate agency based in Bardsey covering North Leeds, Wetherby, York, Tadcaster, Harrogate and surrounding areas.