It will come as no surprise to you by now that properties are taking longer to sell then ever. Well, since June 2013 to be precise. This as buyer caution continues to weigh on the market. According to the latest data from Hamptons, properties are taking an average of 59 days to sell in June 2023, up from 55 days in May. This is the longest time it has taken to sell a property in June since 2013.
The slowdown in the market is being driven by a number of factors, including rising interest rates, inflation, and the ongoing uncertainty caused by the war in Ukraine. However, despite the slowdown, there is no evidence of large price discounts yet. In fact, the average asking price for a property in England and Wales actually increased by 0.2% in June, according to Hamptons. This follows what my sentiment has been for the last 20 years, that South London Property owners are stubborn when it comes to reductions. Despite reducing the price in line with the market to make their move happen will see an equal percentage (but greater £££) discount when they buy their way up the housing ladder, they often refuse, having a line in the sand they will not cross.
The data confirms sellers are reluctant to drop their prices, even in the face of weaker demand. However, it is possible that we may see more price discounting in the coming months, as the market continues to cool. The supply of properties on the market is increasing, which is putting further downward pressure on prices. The rental market is also starting to show signs of weakness, with rents falling in some parts of the country. Not in London though! And the best of the summer market is yet to come.
It is still too early to say whether the housing market is in a bubble, but the recent slowdown is a sign that the market is starting to cool. Overall, the housing market is facing a number of headwinds, but it is too early to say whether this will lead to a significant decline in prices. However, it is clear that the market is starting to change, and sellers may need to be more realistic about their asking prices in the coming months, starting NOW unless they want to be on the market for a long period of time.