In the face of escalating taxes and challenging regulations compelling landlords to sell their properties, Rightmove, the online property portal, is cautioning sellers against setting overly ambitious asking prices. Tim Bannister, a director at Rightmove, emphasized the importance of maintaining realistic pricing amidst the current market dynamics.
Bannister stated, “Momentum to move in 2024 is continuing to build, but prospective sellers mustn’t get carried away. Buyers now have more choice of property for sale and many are still very price-sensitive, with mortgage rates remaining elevated.”
He further advised sellers to capitalize on the increased buyer confidence by setting attractive asking prices before any pre-election uncertainties or unforeseen events dampen the market momentum.
According to Rightmove, the housing market is currently operating at two distinct speeds. While competitively priced homes are being swiftly acquired by budget-conscious buyers eager to make 2024 their year for relocation, overpriced properties are struggling to attract attention and are being overlooked by price-sensitive buyers.
Despite higher activity levels compared to the previous year, Rightmove notes that, on average, it now takes sellers more than two weeks longer to secure a buyer than it did at the same time last year. The portal attributes this delay to the increasing discernment of buyers who now have more time to carefully consider their property choices.
Rightmove’s analysis highlights the importance of setting an appealing initial price, as sellers who do so are significantly more likely to find a buyer quickly.
These insights from Rightmove come in the wake of the portal’s release of statistics indicating a robust start to the market in 2024. Average new seller asking prices have risen by 0.9%, reaching £362,839, and the annual price change has shifted back into positive territory after six months of declines, with prices up by 0.1% compared to a year ago.
Agreed sales in the first six weeks of 2024 have surged by 16% compared to the same period last year, and three percent higher than the more standard market conditions of 2019. This suggests that many early-bird buyers perceive 2024 as an opportune time for relocation.
The market’s growing momentum is further evidenced by a seven percent increase in both new listings and buyer inquiries on Rightmove compared to the previous year. Despite the positive outlook, Rightmove emphasizes the need for sellers to remain pragmatic in their pricing strategies to ensure a successful and timely transaction in the current real estate landscape.