Buyers once again have the power to negotiate prices as the housing market continues to cool ahead of the General Election.
Both supply and demand have declined in the first few weeks of the new year with 44 properties available for sale per branch (compared to 45 a month ago) and the number of potential buyers falling to 353 from 360 in December 2014, according to the National Association of Estate Agents (NAEA) January Housing Market Report. This is a clear sign of the continuing slowdown on the market.
The new data shows that nearly three quarters (73 per cent) of the homes were sold below the asking price in January 2015.
The proportion of deals closed below the asking price in January 2014 was just 56 per cent, which indicates the buyers chances of getting a better offer have risen considerably within a year.
Mark Hayward, NAEA’s managing director, commented:
“The Autumn Statement’s stamp duty reforms have already created movement. Following this, sellers may have hiked up prices to take advantage of buyers’ increased budgets. But it seems buyers are counter-acting this by negotiating prices back down to original asking price opposed to paying over the odds for their dream home, creating a real buyers’ market. Hopefully further reforms around the General Election will help to balance the deficit in supply and demand – only time will tell.
“The housing market is based solely on sentiment and so if consumers feel an ounce of uncertainty; this will result in a temporary lull. With the General Election on its way, we’re starting to see the different political parties stowing up policies around housing, which is undoubtedly causing uncertainty in the property market.”
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