Market confidence drops as homes take longer to sell

A new study has suggested that a slowdown in the housing market is on its way, as economic uncertainty and a lack of consumer confidence predict an 11 per cent decline in transactions.

According to new research by The Times, experts within the property industry believe that market stagnation could lie ahead, as many vendors are waiting almost 10 months for their homes to sell.

Thanks to the considerable rise in house prices since the financial crisis almost a decade ago, potential homebuyers are holding back on pulling the trigger on a purchase. For many, there is a sustained belief that the continued rise cannot continue perpetually; and that buying a house in the present could lead to a position of negative equity if the market crashes once again.

For both estate agents and their clients, this research is undoubtedly a source of great concern, as fears grow that transaction levels could fall to levels not seen since the 2008 financial crisis.

While consumer confidence is a key defining factor with regard to market health, experts believe that a combination of issues is the driving force behind the woes currently facing those who are looking to sell their house fast.

As mortgage rules become more rigorous in the wake of the financial crisis, many prospective homeowners have found themselves unable to secure the necessary means to purchase a property.

Other issues affecting consumer confidence include the increase in stamp duty by George Osborne in April 2016, which failed to incentivise the market for first-time buyers as hoped, as well as the increasing fears that a ‘hard’ Brexit could ultimately lead to a weakened economy.

According to figures released by home.co.uk, an average detached London house now takes 37 days longer to sell than the same time a year previously – up to 196 days. Circumstances are even more discouraging for vendors in Sunderland, who face a wait of 292.2 days to sell their homes.

The resulting market conditions have led to sellers nationwide reducing the price of their houses to encourage interest from those looking to buy, but there are many within the industry who believe that vendors should be encouraged to price their home sensibly from the first day it hits the market.

“Sellers are always keen to hear good news, and with agents struggling for fresh stock, the temptation can be to go for a higher price to impress potential sellers,” said Miles Shipside, director of Rightmove, the online property portal.

“But if the price is too high then it will take longer to sell and the property will stand out as stale and would-be buyers will start to wonder what is wrong with it.”

Worried that your house will take too long to sell? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.