Third of properties on Zoopla reduce asking prices
Zoopla have released figures to suggest that around a third of the homeowners on their website have had to reduce their asking prices. This will come as a surprise even though we know there has been a bit of a lull in the market over the last couple of months as the market ran out of steam.
Some will be a little surprised at the numbers of homeowners that have had to reduce their asking prices. According to Zoopla the average price reduction is in the region of 6%. The property market seems to have come off of the boil compared to the spring and summer when buyers were having to compete with each other for every home that came onto the market.
It was said that there was 10 buyers for every home that came up for sale and in most cases vendors were being advised by estate agents to proceed with sealed bids whereby many of the houses were selling for well in excess of their asking prices. This wasn't helpful as prices were being artificially inflated and would have put the recovery at risk. Things got so silly that estate agents were charging buyers instead of sellers. So instead of charging vendors 2% to sell their home they were telling buyers that in order to secure a sale on their dream home they would have to pay a 2% fee on top of the purchase price.
The biggest price reductions were seen in Mitcham, Surrey where homeowners have had to slash their asking prices by up to 9% over the last couple of months. It is highly possible that all of this will be reversed in the spring as the usual stampede takes place. Provided there are no real shocks in the economy the property market should gain some momentum again and some of these homeowners may be able to increase their asking prices