2023 is the year of the changing housing market. More homes are coming to the market. Fewer buyers are looking, thus for those that are, there is more choice out there. Mortgage rates are increasing but so are rents.
Luckily people still want to move. However, these buyers are no longer panic buying. They are taking their time, often looking at several homes before making an offer.
Take a look at the above graph. It’s important that anyone thinking of selling their home in Lancaster or Morecambe understands what is happening. Too many estate agents tell people what they want to hear rather than showing the facts.
February 2022. Approximately 80% of agents across the UK agreed property sales above the asking price
November 2022. The number of agents agreeing sales above the asking price dropped to around 12%.
May 2023 – 75% of agents report that properties are now selling under the asking price.
At JDG we are still averaging 98% of our original asking price. Take a look at the recent offers we have made over the weekend – a townhouse in Morecambe has offers made OVER the asking price. An apartment in the city has received a FULL asking price offer. A family home near Williamson Park has an offer at 99% of the asking price. However, another home in LA1 5 has an offer which is just 93% (we need to work hard on this one!). That’s 4 offers in just one day – it shows that people still want to buy!
Back to the above graph, 75% of agents report that properties are now selling under the asking price, but did you know that more than 50% of agents state that properties are, on average, selling with a price reduction of up to 5% on the initial purchase price, while 23% indicate reductions are more substantial!
What is really interesting is that Rightmove reported the average asking price of a newly listed property rose by 1.8% between April and May. There is a definite misalignment in the housing market, hence people are seeing so many price reductions. In the last 17 days alone, 155 homes have been reduced in price in Lancaster and Morecambe.
At JDG we believe sensible pricing combined with great marketing and knowing what your buyers are looking for is key. We carry out extensive research on every home we value. If you would like to chat about what your home is really worth and how we can help you move, please get in touch. You can call me on 01524 843322 or email me at michelle@jdg.co.uk
At JDG we are here to help
Michelle x
