Buyers securing average £18k discount off next home – Zoopla

Homebuyers are securing an average of £18,000 off their next home in order to confirm a sale, the latest Zoopla House Price Index has suggested.

The property expert’s report has identified further evidence of a strong buyers market, as higher mortgage rates hit demand and more supply boosts choice and negotiating power.

Zoopla’s data indicated that the discount to asking price for achieved sales is now at a five-year high and has grown to 5.5% for sales over the first half of November – compared to a 3.4% average discount in the first half of 2023.

This is being felt in the south of England where the average discount to the asking price for sales is 6.1% in London and the South East – equating to a total reduction of £25,000 off the asking price.

“These are the best conditions for homebuyers for some years with more homes to choose from and with sellers more prepared to negotiate on price to agree a sale,” said Zoopla executive director, Richard Donnell.

“There is a growing acceptance that what a home might have been worth a year ago is now largely academic given current market conditions. Sellers have plenty of room to negotiate with average house prices still £41,350 higher than the start of the pandemic.

“It’s a positive sign that new sales continue to be agreed at a faster rate than a year ago and pre-pandemic.”

Despite buyer demand remaining 13% lower than 2019, new sales are still being agreed with the total volume currently 15% higher than this time last year, and 5% up on 2019 levels. This indicates greater realism on the part of sellers and a growing sense among would-be movers that mortgage rates may have peaked and could start to fall later in 2024.

However, the market remains on track for one million sales completions in 2023, with sales holding up across many parts of Scotland and inner London – where market activity has underperformed the rest of the UK over recent years.

Foxtons CEO, Guy Gittins, added: “In contrast to the rest of the country, London has not experienced a sweeping decline in house prices, however, the market does experience a higher volume of price adjustments.

“A good agent understands where the market is trading and has the data to find the best price that will still stimulate activity. Going into the new year sales surge, selecting the right agent that utilises the market information well will be critical to homeowner’s achieving their property goals.”

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