The gap between a homeowner’s dream price and what buyers are willing to pay has hit a new record, with homes selling for 17.1% below asking price. This means sellers are having to swallow a bitter pill and accept an average of £62,602 less than they hoped for, according to the latest figures from property experts, Yopa.
Yopa’s analysis of house prices in July 2024 paints a difficult picture for sellers. The average asking price across Britain is currently £365,999, but the cold hard reality is that homes are only actually changing hands for £303,396.
This chasm between expectation and reality is being driven by higher mortgage rates, making it tougher for buyers to borrow as much as they might like. A year ago, the discount was a slightly less painful 16%, highlighting the growing pressure on sellers.
So where in the country are sellers having to make the biggest sacrifices?
Wales takes the crown for the largest price reductions, with homes going for a massive 24.2% below asking price. That means an average Welsh homeowner is accepting £68,000 less than they’d hoped for.
Here’s the regional breakdown of how much sellers are slashing their asking prices:
- Wales: -24.2% (-£68,058)
- North East: -22.8% (-£57,958)
- West Midlands: -21.8% (-£65,958)
- Yorkshire & Humber: -21.4% (-£62,958)
- North West: -20.8% (-£62,958)
Even in London, where the property market is traditionally more resilient, sellers are still having to accept 7.4% less than their asking price.
Some regions have seen the gap between asking and selling prices widen even further over the past year:
- North East: Gap increased by 6.8%
- Yorkshire & Humber: Gap increased by 3.3%
- West Midlands: Gap increased by 2.1%
However, there is a glimmer of hope in the South West, where the gap has actually narrowed slightly, from 19.6% to 19.1%.
So, what does this all mean for buyers and sellers?
Steve Anderson, Yopa’s national franchise director, says that while the property market is more stable than last year, sellers need to be realistic about their asking prices.
“Buyers simply aren’t able to over-stretch when borrowing to put in a higher offer,” he explains.
However, Mr Anderson believes there is light at the end of the tunnel. “Interest rates are forecast to fall before the year is out and, as they do, this should help drive buyer market activity to a greater extent and close the gap between asking prices and sold prices.”