Leeds estate agent offers advice for selling a home after house prices fall by over £4,000

The average price of a newly-marketed home dipped by 1.1 per cent this month, or £4,159, to £366,999, Rightmove said, while annual growth slowed to 7.2 per cent from 7.8 per cent.

Mark Manning, managing director of leading estate agent, Manning Stainton, commented on how that’s playing out in Leeds.

“There is no point comparing this market to the boom markets of 2020 or 2021, where average property prices rose by almost £60,000 over the last three years. The comparison needs to be with what we might consider a normal market, i.e. the market in 2019, which all of the figures are starting to look very similar to.

“While we saw sales in our region fall by 5% in October, undoubtedly due to the shockwaves caused by the mini-Budget, we have seen the average price come back by just under 1%, now at £254,075. The biggest thing for me, which gives an indication on where the market is at, is the volume of properties being reduced. In the early part of this year, 20% of properties available had been reduced. Now this has jumped to 35% as sellers become more realistic about where their price is against the present market conditions.

“While properties on the market continue to grow here, it’s at around a 5% monthly rate, which isn’t enough to make prices tumble. For reference, there were 24% more properties for sale in the same month in 2019.

“Prices will correct to an extent. There is still plenty of money available in the mortgage market to support those that can afford to buy. On the ground right now, we are still seeing buyers come through as mortgage rates steady, but naturally some would-be homebuyers are taking a pause whilst we wait to see what happens with borrowing, interest rates, unemployment and the cost-of-living increases.

“Our priority now is to educate sellers not to list too high and chase the market down further. We have learnt from markets in the past that the key is to ensure the price a seller lists at, reflects good value against other properties available in the market. Think of it as a beauty contest: does a property look the best of the bunch? How is it presented against other properties available, and is the price the most attractive? When we move into a changing market, it’s important to get this right.

“When we are in a rising market, there is very little risk in pushing the price that bit further, as even if the property comes to market at too high a price, often values will catch up and eventually, with patience, the price can be achieved. The danger in pricing too highly when we are in a market where values are starting to reduce, is that you can end up chasing the market down with each reduction being made, never quite catching up to the market position at that time.”