Today I want to talk to you about property pricing. It’s a sensitive subject, especially when we are in a transitional marketplace.
Many homeowners still remember vividly how hectic the 2021/2022 marketplace has been and the stories of people paying over the asking prices. Many will tell me how their neighbour sold in a matter of days and how 6 people wanted it. Sadly, many of the more inexperienced estate agents who are desperate for listings will also tell a homeowner want they want to hear, not what they need to hear. Today’s marketplace is a very different landscape from what it was last Spring and if you want to get moved, it is important that we all understand this.
Property price growth has slowed across Lancaster and Morecambe. August 2022 was deemed to be the peak of the market. Since then prices have dipped (if you follow my monthly market reports, you will know this by just 3.7% across the UK.) However, some people are pricing their homes as if property prices are still increasing!
Would it surprise you if I told you there are currently 1112 homes for sale across Lancaster and Morecambe? 641 of these homes have been for sale for 12 weeks or longer. That is more than 50% of the homes on the market. Even more concerning is that 198 of these have for sale with the same estate agent ( I will add, not us! ).
Since January this year, there has been a choice of 1745 homes for sale. 618 of these have been listed this year. 414 have successfully gone under offer (SSTC). Do you really want to be one of the homes that becomes a struggling statistic?
The image above is courtesy of Dataloft and Zoopla. Zoopla reported that in February 1 in 4 homes reduced their asking prices. I actually admire the clients that went ahead and did that, recognising that the marketplace has changed. The last thing they want to be doing is nothing as all that will happen is that they have to chase the market further.
Pricing sensitivity is becoming increasingly evident in the property market. Understanding local market conditions and pricing realistically is essential to achieve a sale. At JDG we take market research very seriously.
I’ll repeat my mantra for 2023. Sensible Pricing really is key if you want to sell for the best possible price!
Do you have any questions? If so, I am always here to help. Please call me on 01524 843322 or drop me an email at michelle@jdg.co.uk
Thanks for reading
Michelle x
