lower the asking price by £14,000

UK homeowners are willing to lower the asking price by £14,000

UK home sellers are foregoing £14,000 off the original asking price as the market begins to stabilize, as revealed by the data.

As per the property website Zoopla, more than 40% of the homes that are listed there for sale had their asking price lowered to attract “price-sensitive” buyers.

However, according to a separate study released on Tuesday by Halifax, most homeowners with large homes saw their prices skyrocket over the last three years as a result of the pandemic. Nonetheless, flat owners in London had the lowest property gains.

As per Nationwide’s latest data, there has been a decrease in the price of houses in the UK for the past four consecutive months. However, as per its rival, Halifax, the price of houses was constant in January but decreased over the previous four months.

As per Zoopla, after the disastrous mini-budget announced in September created turmoil in the financial markets, there was a “rebound” in the first two months of this year; however, the number of home buyers is half the recorded level since they are exercising caution.

Nonetheless, as per the website, on average, the estate agent’s office had 24 homes for sale, compared to 15 the previous year. Homeowners now have more options when it comes to negotiating the prices of their homes.

As a result, sellers are compelled to give a discount of 4.5% on the asking price of the home, which is the highest price for five years as per Zoopla. However, in London and the southeast, the figure is 5.5%.

According to the website, the average price of a UK home during the pandemic was £42,000; however, homeowners are foregoing one-third of the original price, and the asking price is now on average £14,100.

The site’s executive director, Richard Donnell, conveyed: “Discounts to asking price have widened, and while 4-5% discounts are manageable, if these were to widen further, this would point to a greater likelihood of larger house price falls.” However, he added that he believed the market “remains on track for a soft landing in 2023, with modest price falls of up to 5%.”

As per the data revealed by Halifax, the average price of a UK house surged by 20.4%, or £48,620, from January 2020 to December 2022, increasing from £237,895 to £286,515. 

Compared to three years prior, the same home’s worth increased by 7.8%, or £17,158, for the period January 2017 to December 2019.

As per the data for 2020–22, the average price of bigger properties grew twice compared to smaller ones. Post-pandemic lockdown, there has been a steady increase in huge homes with better home office environments or a garden.

As a result, the price of detached homes increased by 25.9% between 2020 and 2022.

The demand for smaller homes in the more urban areas fell during the government-enforced lockdown. As a result, the price of a small flat grew by 13.3% during the same period. Compared to the area in and around London with an acute space shortage, the average price of a flat grew by 3.8%, or a little under £10,000, in the same three-year time frame.

- Published By Team Timeswire

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