Over optimistic sellers have been asking too much for their properties leaving a trail of unsold homes.
In a recent survey it was revealed that sellers increased their asking prices by more than £4,000 in April, this brought the total increase since the beginning of the year to more than £13,000. This jump has resulted in buyers refusing to meet these prices.
Estate agents has been advising sellers to lower their prices as this is causing an imbalance in the market.
Miles Shipside, director of Rightmove, said: “With buyers still struggling to raise the necessary finance, the net result has been the biggest jump in unsold stock on agents’ books that we have recorded in nearly four years. While stock levels normally increase during the first half of the year, this is a larger increase than normal. With government cuts starting to bite and interest rate rises still expected in the second half of the year, those who are serious about selling should look to price more keenly in the spring selling season.”
He went on to warn that this unprecedented run of five bank holidays over a short period has the potential to hinder already low transaction levels.
“Britain’s bank holiday bonanza could prove an unwelcome distraction for the spring housing market if potential buyers take short breaks and holidays rather than pursuing their next move. At a time when all eyes are on the House of Windsor, will enough eyes be on the houses of those looking to sell in Britain’s over-stocked housing market?”
Here at My Online Estate Agent we advice all sellers to look at what similar homes in your area have been selling for in recent months. See our advice article on accurately valuing your own home for more information.