Rightmove records that new sellers dropped their asking prices in London by an average of -3.6% (-£17,136) in July.
This follows a seasonal pattern of more competitive pricing at this time of year, though the reduction is more than twice the 1.7% drop recorded in July last year. It is also the biggest fall in the capital that Rightmove has ever recorded in the month of July.
Miles Shipside, director at Rightmove, comments:
“Sellers coming to the market in summer are often more price sensitive as they recognise much of the buying audience is more excited about going abroad rather than going to view property. The fall also comes on the back of several months of fairly heady price increases, so it might just be that the market is finding a price level where buyers and sellers are willing to transact. More competition from more properties coming to market and the knock on effects of the Budget rise in stamp duty for properties sold at above £2 million could be making their mark in the statistics ”.
If the market is getting a bit tougher in London, especially during the Olympics, good quality property presentation will be more important than ever for sellers to make their property’s benefits really stand out.
“Those keen to sell this summer should research what it takes to improve their property’s quality, value and appeal to be one of the best in class. Sellers should ask their estate agent if their property is worthy of a medal in terms of the three P’s: Price, Presentation and Promotion. Is it one of the most competitively priced? Is it amongst the best presented in terms of condition? Having ticked those two boxes, then how is it best promoted to ensure a buyer is aware of its endearing qualities over other choices on the market?”
More property has come to the market this month compared to last, with July’s numbers up by 6%. Increased levels of competition tend to lead to lower prices, especially with summer buyers a bit thinner on the ground. New listing numbers are also up 4% on July 2011, indicating a slight increase in willingness to come to market.
“This increase in seller numbers is unusual at this time of year when there is traditionally less buyer activity, and is made even more surprising given the proximity to Olympic distractions and upheaval. It is possible the recent Budget changes in stamp duty could be a contributory factor”.