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Property Price Reductions Reflect Cooling Housing Market

Recent research by Yopa, a national estate agency, has highlighted a trend of daily price reductions for properties recently listed for sale in England. The study, examining the listings on Zoopla, indicates that sellers are adjusting their price expectations to attract buyers in a less active market.

Yopa’s analysis reveals that out of 72,452 homes listed for sale in England over the past 30 days, 6% have already experienced a price reduction. This figure translates to over 4,000 homes, averaging 137 price reductions per day. Regions with more inflated property markets, such as the South East and London, show 7% of newly listed homes dropping in price, amounting to 31 and 27 properties per day, respectively. The East of England also follows this trend, with 6% of new listings undergoing price reductions, equating to 19 properties daily.

However, Yopa’s research indicates that a price reduction does not immediately result in a quicker sale. Of the 4,109 homes with reduced prices within 30 days of listing, only 191, or 4.6%, are currently under offer or sold subject to contract. Even in the West Midlands, where demand for such homes is highest, only 6.3% have progressed to an offer or contract stage.

Verona Frankish, CEO of Yopa, commented on the findings: “It’s a challenging landscape for sellers at present. Higher mortgage rates have caused buyer numbers to dwindle and this has very much transferred the balance of power from seller to buyer.” She added that while property values remain stable, the difficulty lies in finding buyers, leading many sellers to lower their asking prices for a quicker sale.

Despite these challenges, Frankish advises patience for sellers in the current market. Citing previous research from Rightmove, she notes that properties priced accurately according to market conditions are likely to find a buyer in less than half the time compared to those initially listed at a higher price and reduced later. This advice underscores the need for sellers to hold their nerve and adapt to the evolving market dynamics.