The patchy market continues with much of the UK characterised by a slow market, with seven out of ten properties marketed during 2011 still on the market, said Rightmove.
This indicates many “equity poor sellers are unwilling or unable to reduce their prices further”, said Rightmove, but is an opportunity for equity rich sellers to drop prices to get an edge on the competition.
Miles Shipside, director of Rightmove, said: “Early sellers in 2011 had a chance of worming their way into the more active spring market, whereas those coming to market now at the onset of the holiday season have to price more aggressively as many buyers have already gone to ground.”
Shipside said this is the largest July fall for three years, since the 1.8% recorded in 2008 and he expects further falls in the coming months.
Early findings from another Rightmove survey show further falls in housing market sentiment.
“This muted buyer demand has resulted in average unsold stock per estate agency branch being the highest we have ever recorded at this time of year, currently standing at 78 properties,” he said.
Shipside adds: “Against a backdrop of high unsold stock levels and deteriorating buyer sentiment, the proposition that sellers and their estate agents market to potential buyers has to be enticing both in terms of their pricing and the quality of the property’s presentation.”
Rightmove’s research shows that the first week of marketing creates nearly double the interest of any subsequent week. It is therefore vital to set your initial price at the right level to take advantage of the impact made by a fresh property, it said.
Shipside said: “It’s often hard for sellers to be objective about their cherished property, so it’s important to look dispassionately at the three Ps: Presentation, Price and Promotion. Make sure it’s looking its best from day one, that you offer better value than any similar property locally, and when you’ve got those two right then make sure your agent markets the socks off it so it really stands out.”
