The latest data from Propertymark shows a significant decline in viewing activity in the property market. The average number of viewings per property for sale has dropped to 1.7. This represents a 57% reduction compared to the figures recorded two years ago, when an average of almost four viewings per property took place. This development highlights a changing market dynamic.
Propertymark's analysis emphasises that 86% of estate agents report that properties are being sold below their original asking price. This high percentage suggests that sellers' initial price expectations often do not align with potential buyers' current willingness to pay. Buyers' negotiating position therefore appears to be improving.
Reasons for the Discrepancy
Several factors contribute to this growing gap between buyer and seller expectations. One possible explanation is the increased interest rate level, which raises financing costs for buyers and thus reduces their maximum purchase prices. At the same time, many sellers cling to price expectations based on earlier market conditions, when demand was higher and financing was cheaper.
General economic uncertainty and inflation rates could also lead potential buyers to act more cautiously. Such reluctance results in a lower number of viewings per property and ultimately puts pressure on asking prices. Agents are increasingly faced with the challenge of convincing sellers to adopt a more realistic pricing assessment.
Implications for the Property Market
The significant decline in viewing numbers and the high proportion of sales below asking price are clear indicators of a market transitioning from a seller's market to a more balanced, potentially even a buyer's market. Sellers who wish to conclude a sale quickly must adjust their pricing strategies to meet buyer expectations and facilitate transactions.
- —Price realism becomes crucial for sellers to accelerate the sales process.
- —Buyers have a stronger negotiating position in the market.
- —Agents must provide more extensive advice to convey realistic price levels.
- —Market data reflects a general cooling of demand.
