"Agents report that sellers wanting to attract a buyer in the current market need to be realistic on price"
A new study by Rightmove reveals that St. George in Bristol is the new strongest sellers’ market, with eight in ten (80%) of homes listed for sale so far this year successfully finding a buyer and being marked Sold Subject to Contract (SSTC).
Bishopston, also in Bristol, is second (79%) and Heaton in Newcastle is third (77%). The rest of the top five is made up of other areas in Bristol, Horfield (77%) and Fishponds (76%), with the city remaining popular with buyers this year and consistently being one of the most in-demand locations outside of London.
Knightsbridge in London is the strongest buyers’ market, with around just one in five (18%) homes listed for sale this year being marked SSTC. However, by comparison the current average asking price in Knightsbridge is £4,017,845.
The top buyers’ markets are all in London, with Hendon (20%), Bayswater (20%), Southall (22%) and Maida Vale (22%) making up the rest of the top five. The strongest buyers’ market outside of London is Birmingham City Centre, where one in four homes (25%) have been marked SSTC this year.
The number of available properties for sale has steadily improved this year compared with the record low levels of the pandemic market, though it remains historically constrained.
The number of available properties for sale is currently 10% lower than at this time in 2019. A typical estate agent currently has 27 properties for sale on their books, up from 15 last year but lower than the 31 in 2019.
The market has returned towards more normal levels of activity this year, following a frenetic 2021 and first half of 2022.
Many buyers are having to consider their affordability due to rising mortgage rates, though fixed rate deals are improving. The current average five-year fixed mortgage rate is 5.86%, up from 3.85% this time a year ago, but lower than the average of 6.10% on offer just three weeks ago.
For motivated sellers, agents report that getting the asking price right first time is key to attracting a buyer in the current market. Rightmove data shows that properties that need a reduction in asking price are more than 10% less likely to find a buyer than those that were priced right from first listing.
Tim Bannister, Rightmove’s property expert, said: “Market activity has been less buoyant than the pandemic years but the latest local snapshot of seller activity shows that in many areas of Great Britain the majority of homes that are listed for sale still successfully find a buyer. Though faced with the challenge of rising mortgage rates, buyers that can afford to move will find they have more choice and may be more likely to find a home that suits their needs than during the pandemic. Agents report that sellers wanting to attract a buyer in the current market need to be realistic on price, with those who are willing to price most competitively being more likely to have their home marked SSTC.”
