Asking prices for newly advertised properties typically go up at this time of year, but this month’s increase is well below the historic October norm of 1.4%.
New seller asking prices in October 2023 have increased by an average of just 0.5% to £368,231, according to a new report from Rightmove. It’s the smallest rise at this time of year since the height of the financial crisis in 2008.
Buyer activity levels remain significantly lower than during the post-pandemic market frenzy, the property website said. The number of sales being agreed currently stands 17% below this time last year — but there are still buyers out there for the right property at the right price.
Agents advise that sellers need to capture attention with a competitive price from the first day of marketing. Properties with a realistic asking price succeed in finding a buyer in less than half the time that it takes those that need a reduction, and when they do find a buyer the sale is also 50% less likely to fall through, Rightmove found.
“In a market that agents describe as the most price-sensitive ever, buyers are likely to be on the look-out for homes that they feel represent excellent value, and to attract one of these motivated buyers, sellers need to price right first time,” said Tim Bannister, director of Property Science at Rightmove. “If similar nearby properties for sale appear overpriced, serious sellers have an opportunity to stand out from the crowd with a more competitive price and attract immediate buyer interest that our research shows significantly increases the likelihood of finding a buyer.”