In recent months, in certain parts of the country, the British property market has exhibited signs of cooling.
As a result, homeowners selling their homes face increasing competition from more homes on the market.
The increase in mortgage rates has played a pivotal role in this cooling, taking a toll on potential buyers’ incomes, thereby lowering affordability and demand.
The consequence? Some previously buoyant regions, especially in the South, have experienced price corrections.
As the market faces this colder front, local factors like the availability of reputed schools, amenities, and public services remain paramount for those looking to buy.
The Overpricing Trap
In a tougher property market, a common strategy by some agents is to suggest you put your property on the market at an inflated price, only to encourage the homeowner to drop it months later.
Large estate agencies have the resources to allow many listed homes to remain unsold, whereas smaller agencies rely heavily on consistent sales. Hence, the latter often propose more realistic prices to ensure they get the house sold.
I have encountered countless SE16 homeowners being advised to list their property at an elevated price despite their reservations. Over time, with sparse viewings and no genuine offers, they drop the asking price. The original overestimation meant a prolonged waiting period and they lost homes they wanted to buy. People like to think they are level-headed and wise to such tricks.
So why does this happen? Remember, greed can take over when an estate agent says they can get you an extra £30k than another agent. That is why estate agents do it.
Of course, it’s tempting to price your SE16 home ambitiously. While testing the waters with a slightly higher price tag is understandable (we do it often at our agency), refusing to adjust the asking price after the first few weeks if there is no substantial interest could be a costly mistake.
An overpriced home can stagnate on the market, leading potential buyers to assume there’s something wrong with it. The longer it sits unsold, the more it becomes stigmatised.
A lack of early interest regarding viewings should be a clear signal; if there are no serious inquiries and/or offers within the first few weeks, it’s imperative to reconsider the asking price. By being responsive and proactive, SE16 homeowners can avoid the pitfalls of a stale listing and increase their chances of a successful sale and move.
So why is it so much of an issue now?
25.4% More SE16 Homes are on the Market Today than 20 Months Ago
2021 was an exceptional year for people moving home. There were more buyers than sellers, meaning the number of properties on the market in SE16 was reduced. Looking at the numbers…
The number of properties on the market on 1st January 2021 in the SE16 area was 568, but by 31st December 2021, that had reduced to 497.
By the 31st December 2022, that had increased to 512 homes for sale, a rise of 3% in only 12 months.
It has continued to rise and today stands at 623 properties for sale, a rise of 25.4% in 20 months.
With the average number of sales per month in the SE16 area 20.3% lower per month in 2023 than in 2021, with greater supply (25.4% more properties for sale) and that slightly lower demand (i.e., sales down 20.3%) … getting your asking price right is vital.
The SE16 Property Blog 