House selling conditions toughen

Housesellers are finding it harder to attract buyers and are responding both with price cuts and by accepting lower offers, according to a new study.

10:13 14 December 2004

Housesellers are finding it harder to attract buyers and are responding both with price cuts and by accepting lower offers, according to a new study.

Over the last few months a string of surveys has pointed to declining property values and, as prices fall, buyers are apparently keeping a grip on their wallets and waiting for a bargain.

When this is coupled with the traditionally slow period of house sales over the winter months and several pessimistic predictions about house prices next year, the balance of power has seemingly shifted from seller to buyer.

"Sellers are responding by cutting asking prices and accepting lower offers," explained Nicholas Leeming, sales director of propertyfinder.com.

"Realistically priced property is still selling quickly and close to the asking price," he added.

"Our other recent data shows that housebuyers and sellers expect house prices to fall over the coming year, but only modestly.

"They do not expect the market to crash."

Recent data from Nationwide and Halifax, two of the country's largest mortgage lenders, predicts that house prices will not move by more than two per cent in 2005.

However, Barclays has predicted an eight per cent decline in values, while the Council of Mortgage Lenders believes prices will rise four per cent.

But despite current uncertainty, the majority of estate agents still believe putting houses on the market sooner, rather than later, is the way forward.

The National Association of Estate Agents (NAEA) has found that over 80 per cent of estate agents are recommending that sellers should put their property on the market by the beginning of January and not wait until the Spring.

Only 16.2 per cent of agents said that sellers should wait until the spring - traditionally a busy time in the housing market.