Zoopla Says 36% of Sellers Have Reduced Asking Price

Property website Zoopla announced today that 36% of houses on the market have seen their prices slashed in August. Sellers had been increasing asking price of late, in hopes that the summer’s uncertainty would give way to the typical Autumn increase as buyers look to settle into a new home by the holidays. Recent news has brought about a stark reality which has forced sellers to rethink their initial asking price. What this shows is not necessarily that prices are dropping, but that expectations have been placed too high. Reducing asking prices could have many causes. Sellers could purposely set prices high in hopes that starting high will set the bar for negotiations. Ambitious estate agents could also push for higher prices with the intention of securing the initial instruction plus the added bonus of reducing the prices later and thus making the property seem like more of a bargain.

What’s interesting to note is that of those houses over £1 million that have dropped their prices have done so to the tune of 8% off the original. There is no indication as to what percentage of million plus sellers have reduced prices, but those who have were forced to do so to a much greater extreme, both in real and relative terms.