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Property asking prices continue to drop

Property asking prices continue to drop

Category: Mortgages

Updated: 14/02/2011
First Published: 14/02/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A shortage of buyers in the property market has seen homesellers continue to reduce asking prices in an attempt to secure a sale.

The average discount now stands at £18,475, or 6.9% off the original asking price, compared with the reduction of £15,879, or 6.1%, reported by Zoopla.co.uk in November.

The research also revealed that well over a third (37.4%) of all properties on the market at present have had their price reduced at least once.

The website said the figures provide a clear indication of sellers becoming more realistic in terms of their expectations.

The narrowing gap between asking prices and what buyers are willing to pay is most evident at the top end of the market.

For properties listed for sale over £1 million, the average discount has climbed to 10% off the original asking price, up from 8% in November.

"As a result of weaker than expected demand in the last half of last year, sellers have progressively reduced asking prices to more realistic levels in order to achieve sales," said Nicholas Leeming, commercial director of the property website.

"The traditional influx of new properties on the market at the start of the year has created even more intense competition amongst sellers.

"Even the resilient £1million-plus market is showing signs that it is not immune from the general economic pressures as reductions have jumped at that end of the market."

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