In a post credit crunch world, discounts on property prices have become a common feature of the market – so it is with great joy that industry insiders this week received the news that there are more and more houses selling at their posted prices.
According to new figures from property marketing website Zoopla the number of homes for sale which have been discounted from the original asking price b y owners has dropped by 5% in the last year – accounting for just under a third of the total UK property market at the moment.
Less Than a Third of Vendors Selling Houses at Cut Prices
Meanwhile the average discount offered on the 32% of properties still attempting to attract the buyers with a reduction on the asking price has also fallen by 1.3% to 6.3% of the originally posted price.
And for prime areas and property hotspots the figures fall even further with London having only 22% of listings selling houses at a discount and Poole just 9%.
While some may see these figures as spelling the end of property bargains, what they represent is a return to people selling houses at their posted values – which can only be great new for the industry and homeowners as a whole.
Less Discounts Indicate Upturn in Confidence
Zoopla’s Lawrence Hall explained that the reduction in vendors selling houses at reduced prices was a great indication of an upturn in confidence in the UK housing market, which had been fuelled by a number of different factors.
“A fall in the proportion and level of asking price discounts suggests sellers are feeling more confident and happy to wait it out to achieve their target asking price,” he said, citing the improved mortgage availability for first time buyers as one of the keys to our shifting attitude to selling houses.
Forward Guidance Has Positive Effect on Property
He added that the recent introduction of forward guidance on interest rates by the Bank of England under the direction of newly arrived Mark Carney had helped bolster confidence in the financial sector which has in turn, had a positive effect on the perception of the property market.
“Banks, sellers and buyers are all more bullish about the state of the economy, which bodes well for the months ahead. And the Bank of England’s forward guidance on interest rates has generated a greater sense of certainty about the future, which should lead to even more activity.”
Price Reductions “Not Always Necessary”
The news is positive for property owners currently selling houses – as it shows that price reductions are not always necessary to achieve a sale.
Before considering dropping the price of a property owners ought to consider whether they have employed all the property marketing tools available to help with selling houses, such as
…all of which have the potential to play a part in achieving that all important asking price offer.