The most recent data from the National Association of Estate Agents has revealed that over four in five properties was sold for less than their asking price during November.
This was the highest number of homes purchased for less than their valuation since records began in 2013 In October, 82% of properties were sold under their asking price, in comparison to 76% in November 2015.
Supply and Demand Falls
In addition, the report indicates that both supply of stock and overall demand fell during November, as did the number of overall sales.
House hunters slipped by 22% from October to November, from 440 to 344 members per branch respectively.
The number of properties registered was 39 during the last month, representing a 9% decrease from October, when 43 were recorded.
29% of sales were made to first-time buyers in November, 3% down from October.
Over 80% of properties sold for less than asking price in November
Lack of Confidence
Mark Hayward, Managing Director, National Association of Estate Agents, observed: ‘Following the EU referendum earlier this year, we faced a few months of low confidence from buyers and sellers, although in October the market bounced back to full form. We expect this is still the case, and this month’s slow-down is simply down to seasonality – many sellers hold off until January to put their properties on the market, and likewise buyers are more inclined to start the year with a property search, rather than attempting it over Christmas. Likewise, although a large number of sales were made below asking price in November, this can also be put down to the time of year.’[1]
[1] http://www.propertyreporter.co.uk/property/4-out-of-5-properties-sold-for-less-than-asking-price-in-november.html