In the current Lancaster housing market, setting a realistic asking price is critical for anyone looking to sell their home efficiently. With higher mortgage rates for many and a marked increase in properties for sale, sellers might feel tempted to aim high on price.
However, overpricing can create unexpected obstacles, delay sales, and even reduce a property’s final value. Here’s why starting with a market-aligned price is essential for a quick, smooth, and successful sale.
The Changing Landscape of Lancaster’s Property Market
The UK housing market has recently slowed, recording its lowest growth in 12 years, with significantly more homes available than in previous years. Higher mortgage rates have reduced buyer demand and, ultimately, the speed at which homes are selling. Though Lancaster properties continue to sell (up 12.8% year-on-year), they are not moving as rapidly as they did in 2021. This shift in market dynamics has made it more important than ever to set a fair and accurate price for your home.
Why Overpricing Is Risky
Listing your Lancaster property above its actual value might seem appealing at first, but it often leads to issues. When a property is priced too high, buyers with set budgets are likely to ignore it, especially if it’s filtered out of online searches where budget parameters narrow options. Even if an overpriced home initially attracts some interest, potential buyers may view it as overpriced and may hesitate to make offers, assuming the seller is unwilling to negotiate.
Homes that linger unsold for extended periods tend to face additional challenges. After an extended time on the market, properties may become “stale,” leading prospective buyers to suspect issues beyond price, such as hidden faults. Many sellers eventually reduce the price after limited interest, but by then, they’ve missed the ideal window of initial buyer excitement, risking a protracted and less profitable sale process.
Setting the Right Price Is Key to a Quick Sale
Research underscores the value of pricing a home realistically from the start. According to a report by TwentyEA and Denton House Research, homes that sell within the first 25 days have a 94% chance of reaching a completed sale, while properties that remain on the market for over 100 days see this chance drop to 56%. Setting the correct asking price increases the likelihood of attracting qualified buyers swiftly, which leads to a higher probability of completing the sale.
Furthermore, correctly priced homes typically attract more serious buyers who are ready to move forward, which keeps the sale on track and reduces the likelihood of drawn-out negotiations or re-listing.
Increased Inventory Means More Choices for Buyers
Lancaster’s property market has seen an influx of listings, with 49% more homes for sale than three years ago. While this increase has yet to significantly affect home prices, it has provided buyers with more options and bargaining power. Buyers can afford to be selective, which means they’re less likely to settle for an overpriced property. This availability of choice moderates aggressive price growth and creates a more balanced market, making realistic pricing a priority for motivated sellers.
The “Half and Half” Reality of UK Home Sales
Of the 1.2 million homes taken off UK estate agents’ books since the start of 2024, only about 53.5% have sold, while the remaining 46.5% were withdrawn without a completed sale. Essentially, UK homeowners face a “coin flip” likelihood of successfully selling their property. Overpricing exacerbates this uncertainty, with many homes that don’t sell either eventually being removed from the market or re-listed at a lower price after considerable delay.
Local Market Insights for Lancaster Sellers
In Lancaster specifically, the market trends have shifted over recent years:
- In 2021, an average of 131 new properties were listed monthly, with 147 selling each month.
- By 2024, monthly listings rose to 165, with an average of 128 homes selling each month.
The greater volume of available homes has cooled price growth slightly, creating a stable but competitive environment for sellers. For those who want to stand out and attract offers, a reasonable asking price is now more critical than ever. Setting a price aligned with the market value from the start allows Lancaster sellers to leverage buyer interest in a market where homes are in abundant supply.
Avoiding the Overpricing Trap
Overpricing is often the result of high expectations, sometimes driven by estate agents who promise ambitious figures to win a listing. However, starting with a realistic price is far more likely to lead to a satisfactory sale. Overvalued homes frequently require price reductions, lose out on buyer interest, and linger on the market, costing sellers both time and potential profits.
According to research from Which, properties listed at a fair price from the outset tend to sell faster and at a better final price than those initially priced too high. A property that undergoes price reductions may lose its appeal, as buyers often view multiple price cuts as red flags.
The Lancaster Market Outlook
While dramatic price increases aren’t expected soon, neither are sharp declines. Lancaster’s market is expected to remain stable, supported by a steady demand for housing. Demographic trends, a strong labour market, and ongoing immigration suggest that property transactions will continue at a steady pace. Additionally, a potential reduction in base mortgage rates by late 2025 may help encourage more buyers and bolster market activity.
In the meantime, sellers who set competitive asking prices will be well-positioned to capitalize on the current market environment. With buyers having more choices and keeping a close eye on value, realistically priced homes are the most attractive to serious buyers.
Make Your Move with Confidence
For Lancaster homeowners considering a move, now is the time to set a realistic, market-aligned asking price that maximizes your chances of a successful sale. An accurately priced property stands out, attracts more qualified buyers, and reduces the risk of a lengthy time on the market. The best approach to ensure you achieve a smooth sale is to seek expert advice for a professional valuation based on the current Lancaster market conditions.
If you’re looking to move, please get in touch for a free, no-obligation valuation or market appraisal. A professional can help guide you to the best possible price to attract buyers, secure a timely sale, and allow you to make your next move with confidence.
My name is Michelle Gallagher. You can call me on 01524 843322 or email me at michelle@jdg.co.uk.
Thanks for reading
Michelle
Ps. JDG clients enjoy a selling success rate of 85.29% compared to a UK average of 53.5%. It’s another great reason why Lancaster sellers choose to work with us!