Home sellers across much of England are still overvaluing their properties despite a more cautious housing market according to new analysis from House Buyer Bureau.
The company’s latest research found that only London and the South East are currently seeing seller expectations broadly align with wider market conditions, while homeowners elsewhere continue to price above what buyers are willing to pay.
House Buyer Bureau analysed internal data from homeowners entering the quick-sale market and compared seller expectations against estimated average market values across England.
The figures show London sellers are now pricing below wider market values, with average asking expectations sitting at £447,692 compared to an estimated market value of £560,889 – a gap of more than £113,000. In the South East, seller expectations were also below market value, although by a far narrower margin of £6,977.
BUYER DISCONNECT
However, across most other regions sellers are still overpricing, creating what the company described as a disconnect between buyer demand and seller expectations.
The South West recorded the largest gap, with sellers overvaluing homes by an average of £45,086. Yorkshire and the Humber followed at £33,459 above estimated market value, while the North West and East Midlands saw gaps of £26,632 and £26,262 respectively.
House Buyer Bureau says unrealistic pricing remains one of the biggest causes of slower sales and failed transactions.
PRICE EXPECTATIONS
Chris Hodgkinson (main picture, inset), Managing Director of House Buyer Bureau, says: “One of the biggest challenges in the current market is that pricing behaviour is being shaped very differently depending on where you are in the country.
“In London and the South East, where values had already climbed to very elevated levels, sellers have been among the hardest hit by the shift in market conditions. As a result, many are reacting decisively, often shaving significant value off their expectations in order to secure a sale, sometimes more than is strictly necessary.
“Elsewhere across the country, however, the picture is very different. In many regions, sellers are still coming to market with expectations that sit above where buyers are willing to transact, which is creating a clear disconnect between pricing and demand.”
