Over-ambitious sellers forced to cut prices on 32% of homes: Rightmove

Rightmove has revealed that a third of homes for sale have fallen in price as sellers struggle to find buyers in an increasingly difficult market.

The property listings giant said ‘overly optimistic’ initial pricing led to longer sales times and eventually asking for price reductions on 32 per cent of homes.

The imbalance between supply and demand means buyer choice is at its highest level in any May since 2015, creating a highly competitive market where house hunters can be much more selective.

Despite this, assertive sellers continued to offer higher prices. Last month, the average price tag of a new home listed for sale rose by £4,333, or 1.2 per cent, to £378,304.

Rightmove said sales agreed this month were 4 per cent lower than a year ago. mortgage rates Although it was 2 per cent higher in 2024 than this time, it was ‘significantly lower’.

According to Rightmove’s analysis, it takes 91 days longer to sell a house whose price has been reduced than it does to sell a property that does not need to be price reduced.

The online property portal struck an optimistic tone, saying the housing market was not bucking under the weight of high mortgage rates and remained ‘generally secure despite global uncertainty and resulting cost of living pressures’.

Buyer affordability continues to drive a significant increase in price growth across the annual North-South divide.

In the North East, where homes are more affordable, the average newly listed price tag is £200,789, up 2.7 per cent on the previous year. The average price tag for newly listed homes in the North West was 2.6 per cent higher than a year ago.

By contrast, the average price tag in London fell by 2.4 per cent year on year to £685,347.

The average cost of a property coming to market in the South East was £489,561, 1.6 per cent lower than a year ago.

Rightmove property expert Coleen Babcock said: ‘It is normal to see asking prices rising as we head into the spring selling season.

‘What is notable this month is that market activity has remained fairly stable despite ongoing cost of living pressures and wider global uncertainty.’

He added: ‘Prices are rising in the North, but all buyers should remember that buyer preference is at its highest at this time of year since 2015.’

The average two-year fixed-rate mortgage rate fell to 5.18 per cent from 5.42 per cent a month ago, Rightmove said. The change means monthly mortgage repayments on such deals are around £50 lower than the previous month.

How long does it take to sell houses?

Rightmove said it currently takes around 71 days to find a buyer for a property in London. In the Southeast, it takes 67 days.

In the South West, where the average selling price is £389,772, it takes around 68 days to find a buyer.

The average time it takes to find a buyer in Yorkshire is 62 days, falling to 61 days in the West Midlands, 57 days in the North West and just 31 days in Scotland.

Babcock said: ‘It is therefore increasingly important to get the asking price from the start, as homes that are priced too competitively take longer to sell.’

Research published by Zoopla this month found that more than two in five homes offered for sale in the last three years have not sold. It was stated that many sellers set unrealistic prices that put potential buyers off.

In a survey of 2,000 people who listed their homes with a real estate agent in the past three years, 44 percent said the property had never sold.

Of these, 34 percent admitted that their asking price was ‘too high’ in retrospect.

53 percent of sellers said they had to lower their prices before finding a buyer.

In the first three months of this year, homes listed on Zoopla generally sold for 3.5 per cent below the asking price. This is a cut of £18,800 on an average priced home.