Today I want to talk about property prices and sales activity. For months we have been talking about the Housing Market changing. Today I want to tell you it has changed. I have conversations with prospective sellers who seem to think that Lancaster is immune. I wish it was.
Across the UK house sale numbers have fallen back. Sale volumes are now tracking at the lowest level in 7 years. We have been lucky in Lancaster, however, we must recognise what tends to happen down South, tends to happen several months later in the North.
Property prices have moderated and while there is still good demand, especially in the lower to mid-market, sensible and realistic initial pricing does impact on sales success.
Here is an interesting fact. Data from Rightmove indicates that properties that experience a price reduction are 10% less likely to go under offer. Those that do go on to sell are also on the market for more than double the time, before they go SSTC (Sold Subject To Contract). The problem is when you have to reduce your price, you often tend to have to reduce it by more than it was worth 3 months earlier, otherwise, you are always chasing the market down.
Here is another fact. This time from Zoopla. The average reduction on the initial asking price at the point of sale is 3.8%, although more than 40% of recent sellers have accepted offers of 5% or more below.
And here is a fact from us. In June 2022, there were just 300 homes for buyers to choose from in Lancaster. In June 2023, there were 448. This is an increase of almost 50%. Simply put buyers have more choice.
My message is clear and has been since the start of the year. We must all forget what our friends, families and neighbours sold for last year, or even how fast they sold. The market is different. However, if you price your home sensibly, make sure your marketing stands out and work with a knowledgeable, experienced estate agent, it will sell!
My name is Michelle Gallagher. You can call me on 01524 843322 or email me at michelle@jdg.co.uk
Thanks for reading
Michelle
JDG Estate Agents are officially ranked as the UK Best Estate Agents, ranking no.1 out of 15,000 estate agency brands across the UK in both 2022 and 2023. We have been successfully selling homes across Lancaster and Morecambe since 1989 and have been involved in over 9000 property sales across the region.