There are many things to pay attention to in the housing market. However, one of the topics that come up time and time again is the distance between asking prices and sales prices.
At Stones Residential, we work closely with buyers to help them get the best price. It is important people know that there is often a gap between the asking price, and what the property eventually sells for.
However, a good agent will help you make an informed decision, and we are pleased to say we have assisted many vendors achieve a suitable price.
Do you have a price you must sell for?
Before the stamp duty holiday was introduced, the average asking price between January 2020 and June 2020 was £277,104. At this time, buyers were paying £248,102 on average. This equates to a 10.5 difference. However, since the 8th of July 2020, the gap has fallen to 7.2%. The stamp duty holiday has led to increased market activity.
Sold prices since then have averaged £261,325 and this is an increase of 5.3% on the previous average sales price of £248,102. There has also been an increase in asking prices, equating to 1.6%.
London leads the way
Before the stamp duty holiday, sold prices in the capital were coming in at 0.5% less than the average asking price. However, since the introduction of the stamp duty holiday, the sales price in London stands at 2.1% than the asking price.
The average sales price in London stands at £493,075 while the average asking price is £483,047.
Other areas where the gap is low between asking prices and sold prices include:
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The South East of England, where the gap is 3.2%
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The North East of England, where the gap is 5.2%
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The East of England, with a gap of 6.2%
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Then West Midlands, where the gap is 7.6%
Colby Short, Founder and CEO of GetAgent.co.uk, commented: “It’s inevitable that sellers will enter the market at a higher price than they’re likely to sell for and so sold prices are almost always going to come in at a lower average than asking prices. However, in hot market conditions, this gap tends to close as more buyers fight it out for the same property and at present, we’re seeing a pretty hot market indeed. So much so that sold prices in both London and the North East have actually crept above the average asking price since the introduction of the stamp duty holiday, while all but one other region has seen the gap close.”
Colby concluded by saying; “With more money in their pockets and more competition when trying to secure a home, buyers are paying that little bit more. Of course, this gap would be wider, but savvy sellers are also entering the market at a higher price point in order to make the most of these buoyant market conditions.”
If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.
