Zoopla.co.uk Blog

Property asking prices reduced to highest level in over a year

Bolton four bedroom family home reduced by 18.7%

Our latest analysis of current asking prices is showing that those selling continue to have to lower prices due to weak buyer demand. We’re also seeing the north-south divide continuing to widen – sellers in the north are being forced to reduce property asking prices by much more than their counterparts in the south. Northern towns and cities dominate the list of places with the highest average price reductions.

Sluggish economic growth has hit buyer confidence and tight-fisted lenders are currently making it impossible for swathes of would-be buyers to benefit from the price reductions.

The good news for those who can get mortgages, is that now is as good a time as there has been in over a year to bag a property bargain.

Key findings:

• 2 in 5 properties on the market today have had price lowered at least once
• Average price reduction by sellers is over £18,500, 7.1% off original price
• North seeing more asking prices reduced and by higher % than in South

More current sellers have reduced the asking price of their home than at any time in the last year. Two in five (38.6%) of all properties currently for sale in Britain have had their asking prices reduced at least once since coming onto the market, up from 37% three months ago, and well ahead of the 32% one year ago.

Even properties over £1 million, where the market has been most resilient, have seen more asking price reductions. Of all £1 million+ properties on the market, 27% have had their price reduced at least once, up from 25% three months ago and significantly higher than the 22% one year ago.

Sellers in Bolton are suffering the most, having been forced to reduce the original asking price by 8.6% on average. Glasgow (8.2%) and Newcastle-upon-Tyne (8.2%) complete the top three, while other major northern cities like Liverpool are also in the top ten. Conversely, prices in the south-east have remained more immune to reductions where properties in Chelmsford (5.5%) have the lowest average discount and the list also includes other prominent south-east areas like London (6.3%) and Croydon (5.6%).

London has the lowest proportion of price-reduced homes in the UK (32.4%), serving to emphasise its detachment from the rest of the market. Meanwhile, in Stockport, nearly half (47.8%) of all properties for sale have been reduced in price since coming onto the market, closely followed by Huddersfield (46.3%) and Chesterfield (45.8%).

So, if you’re currently researching the market and looking to buy, make sure you use our unique feature allowing you to hunt for bargains by sorting properties for sale on Zoopla by those that have been most-reduced in price.

Here’s some more info on our most-reduced in price feature.

Zoopla.co.uk list of 50 key British cities/towns with property price reductions

Areas with Highest Level of Discounted Homes on Market

Source: Zoopla.co.uk (August 2011)

Areas with Highest Average Asking Price Reductions

Source: Zoopla.co.uk (August 2011)

Areas with Lowest Level of Discounted Homes on Market

Source: Zoopla.co.uk (August 2011)

Areas with Lowest Average Asking Price Reductions

Source: Zoopla.co.uk (August 2011)

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August 16, 2011 at 9:23 AM Zoopla 3 comments

3.45 million homes bought in last 5 years, now ‘Underwater’

There is an unprecedented number of homeowners ‘stuck’ with homes they bought in recent years with the expectation that prices would continue to sky-rocket. Our latest research shows that 4 out of 5 homes purchased in Britain since 2006 have a property market value today below their purchase price.

As as a result, home owners do not want to take a loss on their asset and many owners have been unwilling to set realistic asking prices to sell them. Of the 4.32 million homes purchased since 2006, and where the ownership remains the same, 3.45m (80%) of these homes are ‘underwater’ (worth less today than their purchase price).

Those worst affected are the homeowners who bought at the peak of the market. 93.2% of homes bought in 2007 and 88.9% of those bought in 2008 are now ‘underwater’. Over the last 5 years, buyers who have fared best are those who bought in 2009, having successfully timed the bottom of the market during the recent downturn.

At a regional level, the North East of England is the worst affected area, with 93% of properties purchased since 2006 yet to climb back to the values paid for them by their owners. At the other end of the scale, the London market has been unique and bounced back very strongly from the recent market lows of 2009. Consequently less than half (46%) of homes bought over the last 5 years in London are now valued below their purchase price, underlining how much more resilient the capital has been to the property downturn versus the rest of the country.

Number of homes ‘Underwater’ by year of purchase

Source: Zoopla.co.uk (June 2011)

Number of homes bought in last 5 years ‘Underwater’ by region

Source: Zoopla.co.uk (June 2011)

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June 27, 2011 at 12:57 PM Zoopla Leave a comment