Rightmove claimed that homes were taking longer to sell and the number of unsold properties was at the highest level for this time of year since its surveys began. Each estate agent had an average of 67 homes on its books, up from 56 in the previous month, the research stated.
However, it estimated that selling prices had fallen by 10 per cent since their peak last year. The company believed that as banks tightened their lending criteria, sellers should accept that their homes would be sold at new prices or risk their home becoming unsaleable altogether.
However, sellers were apparently struggling to understand how to price their home in a stagnant, or falling, market, with low sale prices hitting those sellers downsizing or leaving the property market. Sellers who were upsizing could negotiate a more generous discount on the house they were moving into, dwarfing any ‘loss’ on their existing home, it was suggested.
Miles Shipside, commercial director of Rightmove, said: “In the current market, sellers should price below their competition to achieve more interest now and avoid a larger price drop later in the year. Most sellers seem to be ignoring the increased competition from other unsold properties and the challenge buyers now face in obtaining a mortgage.”
Simon Dunn, National Association of Estate Agents branch chairman for Yorkshire, commented: “A percentage of potential buyers will view a home they are really keen on but cannot sell their own. Offers from buyers who can proceed are often very low and even the best negotiator can struggle to put a deal together.”
