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fewer sellers drop prices

Confidence in property high as fewer sellers drop prices

Confidence in the property market is at its highest level since the start of the economic downturn.

12.11.13 Sellers expectations

For sale: Two bedroom flat in London’s Honor Oak Park for £349,995

It means fewer sellers are feeling the pressure to drop prices, according to the figures published by Zoopla.

Sellers’ expectations could rise further in coming months as the typical New Year rush of buyer demand is boosted by the second phase of the Government’s Help to Buy scheme.

However, a significant rise in the level of housing stock coming onto the market could distort the trend.

The proportion of properties for sale seeing their asking price drop has fallen significantly as confidence builds in the property market.

Zoopla reveals only 31 per cent of properties on the market today have had their asking prices cut since first being listed, down significantly from 40 per cent two years ago in November 2011.

The level of the reduction in asking prices has also fallen during this period. Sellers who were discounting their properties to try to achieve a sale in November 2011 were doing so at an average of 7.4 per cent of the original price. The average reduction today stands at 6.4 per cent of the original price.

Preston has the highest proportion of discounted properties, with 43 per cent of homes for sale reduced in price since coming onto the market.

Yorkshire towns dominate the remainder of the top five places with the biggest proportion of reduced-price properties on the market with Rotherham at 42 per cent, Wakefield & Barnsley at 41 per cent and Doncaster at 40 per cent.

London tops the list of places with the lowest proportion of price-reduced properties on the market at 20 per cent, as a result of high demand and low stock in the capital. Bedford (25 per cent) has the second lowest proportion of discounted properties for sale with Milton Keynes home to the third lowest proportion (28 per cent).

The biggest average discounts on offer the original asking prices are to be found in Liverpool, with an average current asking price reduction of 8.6 per cent (£14,149). The smallest discounts are being offered in Plymouth and Edinburgh, where sellers who have dropped prices have done so by only 5.5 per cent on average.

Top 5 Areas with Highest Proportion of Asking Price Reductions

Rank Area

% of Homes on Market Reduced

Avg. Price Reduction (%)

Avg. Price Reduction (£)

1

Preston

42.8%

7.4%

£15,736

2

Rotherham

41.6%

7.7%

£11,211

3

Wakefield

41.3%

7.2%

£14,348

4

Barnsley

41.2%

7.9%

£11,166

5

Doncaster

40.4%

8.0%

£14,431

Source: Zoopla.co.uk (November 2013)

 

Top 5 Areas with Biggest Asking Price Reductions

Rank Area

Avg. Price Reduction (%)

Avg. Price Reduction (£)

% of Homes on Market Reduced

1

Liverpool

8.6%

£14,149

31.0%

2

Poole

8.5%

£45,897

31.3%

3

Newcastle upon Tyne

8.3%

£17,985

33.5%

4

Sunderland

8.2%

£11,970

35.3%

5

Blackpool

8.1%

£11,853

34.9%

Source: Zoopla.co.uk (November 2013)

 

Top 5 Areas with Lowest Proportion of Asking Price Reductions

Rank Area

% of Homes on Market Reduced

Avg. Price Reduction (%)

Avg. Price Reduction (£)

1

London

20.2%

7.8%

£80,628

2

Bedford

24.8%

6.4%

£20,061

3

Milton Keynes

27.7%

5.6%

£15,704

4

Bournemouth

27.8%

7.3%

£28,883

5

Durham

28.6%

7.5%

£12,442

Source: Zoopla.co.uk (November 2013)

 

Top 5 Areas with Smallest Asking Price Reductions

Rank Area

Avg. Price Reduction (%)

Avg. Price Reduction (£)

% of Homes on Market Reduced

1

Plymouth

5.5%

£11,994

33.5%

2

Edinburgh

5.5%

£15,962

29.6%

3

Milton Keynes

5.6%

£15,704

27.7%

4

Wolverhampton

5.7%

£12,752

34.0%

5

Ipswich

5.9%

£15,543

33.0%

Source: Zoopla.co.uk (November 2013)

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