Anyone noticed "For Sale" residential discounting starting to happen?

solidpro

I track new properties for sale in two different large towns across the 5 biggest online aggregators and in August everything was very much selling within days. Now it appears lots of properties are being heavily discounted - in the last week I've seen anything from £15k to £40k in price drops on houses for sale.

I've put this down to two things - uncertainty regarding Springtime covid lockdown/unemployment rises/No deal Brexit and the length of time it's taking to complete a purchase from start to finish during the autumn spring to beat the March deadline for Stamp Duty waive up to £500k. I've guessed that due to lockdowns, distancing, furlough etc that it take much longer to go through the purchase because professionals simply aren't as efficient as they could be doing their jobs (especially surveyors who have to visit properties).

Has anyone else noticed price drops in the second half of September?

hazyjo

Read some the posts on here from people losing properties that are selling quickly or over asking price.

Obviously some will be overpriced, won't sell, and will need to be discounted. Or will be in areas not increasing.

Really don't think this is a black and white question/statement.

Things here have gone up a fair amount recently, but my next door neighbours have been trying to sell a 5 bed house for ten months but they're asking too much (despite a very recent price drop)!

Some people will choose to try their luck first, especially with the stamp duty holiday, and you may see some quick reductions.

tom9980

I am seeing more property stick around a bit longer and some kite flying prices come down a bit. Not really seeing anything on the market I would call a bargain yet.

on the rental side there has been a total collapse in good 3/4 bed property being available to rent.

Exodi

It's quite a frustrating time be purchasing a house at the moment.

News of house price rises (which only came about due to clearing a backlog of sales that should have happened during lockdown) has made sellers whack up their asking prices, despite the reality being that we are in a recession with mass redundancies looming.

People hoping to save 5k on their stamp duty can look forward to buyers adding 10k to their asking price.

Ironically, I wouldn't be suprised if this stamp duty break ends up discouraging sales. Or at least it will till the chancers take off the 100k they'd added to their asking price in the last couple of months.

AnotherJoe

From what I've heard talking to my EA houses are selling at about 95% of the AP round here (SE England).

But they are "flying off the shelves". 

We'll see how that works,  mine goes up for sale a week from now.

Missy79

I've seen loads of properties selling very quickly generally, but I would say a proportion are reducing their prices really quite soon after coming on the market. I think they're scared they'll get caught up in a dropping market so are reducing sooner than really necessary.

billy2shots

Not a house but I've just agreed a price to sell 17 acres of land (pasture not building). 

Was up for sale at £315k. Two offers on day 2, sale board not even up yet. I accepted £331,500k. Didn't expect to get two offers so quick or to agree over the asking price. 

Also sold a boat 2 weeks ago within 5 days accepting  2% lower than asking price. 

Not residential houses but these 'luxury' sales give an indication that people are still happy to spend in the current climate. 

Heres_the_deal

I was looking at properties during July for £180-200k which are now priced at £200-220k. They had already been on the market for many months back in July and went unsold, so not sure what the thinking behind the price increase suggests.  In Cornwall, prices have started to drop a little, yet just north of Hull they've increased.  One EA told me he was selling at 98% of the AP, yet much of what he showed us has still not sold.   In contrast I have viewed properties in need of full modernisation sell, yet others priced cheaper in the same street and better condition still waiting to be sold - different estate agents could be one reason??

eidand

I don't think there can be a blanket statement, it depends very much on the area. Where I am, houses and bungalows sell quickly, but it is a highly desirable area and prices are high. Of course some do hang around, but that's because of sellers being way too optimistic. 

edgex

There does seem to be a standard 'take £5-10k off asking price if not sold in first month' happening on a lot of properties.
Do wonder if EAs are somewhat over-valuing properties just to get them on their books instead of a competitors.

Murphybear

eidand said:

I don't think there can be a blanket statement, it depends very much on the area. Where I am, houses and bungalows sell quickly, but it is a highly desirable area and prices are high. Of course some do hang around, but that's because of sellers being way too optimistic. 

We also live in a desirable area and I’ve noticed the “for sale” boards changing to “sold” very quickly.  There is a road near us that locals call “millionaires row” and the speed the houses have sold is almost scary.