The number of people looking to sell continues to outstrip the number of active buyers meaning the balance of power in negotiations remains firmly with the buyers.
Over the last three months almost 70% of properties sold at Fixed Price were secured for less than the asking price compared to 53% at this stage last year.
David Marshall, business analyst with ESPC commented:
“The last few months have seen a continuation of trends witnessed at the start of 2011 with prices falling back from the high levels witnessed early in 2010. The first half of 2010 saw prices rise sharply and the falls we are witnessing today generally offset last year’s increases meaning that in most areas prices are starting to return to 2009 levels.
“Market conditions continue to favour the buyer. There are around 30% more properties available for sale than you would normally see at this time of year and the number of properties selling is around half that seen prior to the credit crisis. As a result buyers are enjoying more success in negotiations. The average premium being paid on properties sold at Offers Over is down from 9% last year to 5% this, and more properties sold at Fixed Price are being secured for less than the asking price.
“Whilst there has been a slight increase in mortgage availability recently we expect market conditions will remain in favour of buyers in months ahead. This should mean prices will continue to inch down in months ahead whilst the number of homes selling will be roughly in line with 2010 levels.”
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