BREAKING PROPERTY NEWS – 07/03/2023
Daily bite-sized proptech and property news in partnership with Proptech-X.
Sellers Need to Be More Realistic About Market Conditions, as More Properties Remain Unsold – Says Property Expert
A top property expert is warning that homeowners need to be more realistic about current property market conditions if they hope to secure a sale, saying many are still using a sale strategy more suited to last year’s market.
According to new figures, less than half of properties on the market in England and Wales are currently sold subject to status. 46 percent of home sellers have accepted an offer; a fall of 15 percent from the 2022 average.
Whilst an increase in unsold properties is good for those in a position to buy, offering more choice and greater negotiating power, it is not such good news for those hoping to sell.
| Region | Current percentage of properties sold subject to contract | Average percentage of properties sold subject to contract in 2022 |
| Whole of England and Wales | 46% | 61% |
| East Midlands | 44% | 63% |
| Greater London | 42% | 53% |
| North East | 43% | 61% |
| North West | 49% | 62% |
| South East | 46% | 63% |
| South West | 50% | 67% |
| Wales | 47% | 59% |
| West Midlands | 47% | 65% |
It seems sellers are still feeling optimistic, despite the lower sale rate, with a steady supply of properties coming onto the market. In January 2023 there was an average of 27 properties available within a quarter mile of each postcode. In January 2022 the average was 26 properties.
| Date | Average number of properties on market within ¼ mile radius |
| January 2023 | 27 |
| January 2022 | 26 |
| January 2021 | 33 |
| January 2020 | 26 |
| January 2019 | 27 |
Danny Luke, whose company has bought and sold more than 6,000 properties over the last 25 years, said: “The property market has gone through a lot of changes over the last year.
“At the start of 2022, the property market was very overheated. Buyers were fighting it out for limited stock, pushing property prices ever higher. However, since the end of last year, rising inflation and interest rates have caused downward pressure on demand, creating more of a balance between buyers and sellers.
“There are still buyers out there looking to move, but sellers cannot take the same approach they would have done in 2022.
“It’s no longer a seller’s market, which means pricing needs to be less ambitious. Sellers also need to be realistic about how long a sale might take. This time last year, properties were often selling before they made it onto online portals such as Rightmove and Zoopla, with several would-be buyers competing for the property as soon as it became available. It’s now a very different story, with even highly desirable properties often sitting on the market for several weeks before finding a buyer.
“The slowing speed of the market is also causing significant property chain issues. Last year, if your property sale fell through, you could be fairly sure you’d be able to find another buyer quickly. Losing a buyer now is far more likely to cause the whole property chain to collapse, as others with connected sales fear how long it might take to complete the chain for a second time.”
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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