A prominent estate agent suggests there’s beginning to be more homes on sale than buyers to purchase them.
Polly Ogden Duffy – managing director at John D Wood & Co, a brand owned by Connells – says: “Nationally there is an increase in property supply unmatched by an increase in number of buyers.
“In London, some discretionary sellers and buyers are pausing as the impact of political and economic headwinds take time to settle.
“Pricing strategy is critical right now. With an increased supply of homes for sale buyers can be more selective, and overpricing – unless your property is truly exceptional – is a fast track to stagnation.
“Sensible pricing will be key to attracting committed, proceedable buyers in today’s market.”
Ogden Duffy’s comments accompany the latest housing market snapshot from Rightmove.
This says that while new seller asking prices have risen 0.6% to a new record of £379,517 the increase is the lowest at this time of year since 2016, as a decade-high number of homes for sale limits price growth.
The number of new properties coming onto the market for sale is now 14% ahead of this time last year
The portal admits the traditionally strong late Spring market is more subdued following a busy first quarter of the year. Along with the smaller-than-usual price increase, there has been a dip in new buyer demand following April’s stamp duty increase.
Despite April’s lull in new buyer demand the number of sales being agreed in the last month is 5% higher than at this time last year, indicating that – as Rightmove puts it – “spoiled-for-choice buyers are still being tempted by the right property at the right prices
“In the current market, buyers may well have several similar homes to choose from in their area, and a home which appears over-priced compared to the competition may not get a second look” explains Colleen Babcock, property expert at Rightmove.
“This month’s price increase being the lowest in May for nine years is a sign of a market that favours buyers and is more subdued than usual.”
