Is the Portsmouth property market returning to equilibrium?
28.9% of Portsmouth property sellers reduce their asking prices as the property market equilibrium starts to return…
- 173 of the 599 properties on the market in the Portsmouth area have had a price reduction in the last 3 months.
- The average reduction has been 6.2% of the original asking price.
- This is great news for Portsmouth home buyers and Portsmouth buy-to-let landlords, strangely Portsmouth house sellers as well.
The last couple of years of the Portsmouth property market has seen some amazing prices being achieved with multiple offers and many properties selling for way over the asking price.
Yet, as we have been writing about the Portsmouth property market over the last few weeks, the tide is beginning to turn, and the pendulum swings more towards a balanced Portsmouth property market as more homeowners in the Portsmouth area (PO1/2/3/6) have been reducing their asking prices.
Of the 599 properties for sale in the Portsmouth area, 173 have been reduced in price in the last 3 months.
This can be broken down as follows…
|Price Range of the Portsmouth Property||Number of Price Reductions in Last 3 Months|
So why is this important and why is this good news, even for Portsmouth house sellers?
Property industry statistics show that 5 out of 6 house sellers will buy another property and over 80% of those sellers will move up the property ladder.
When you move up the property ladder, that normally means you pay more for the one you want to move to (that’s why it’s called the property ladder).
So, whilst you won’t be getting as much for yours as you might have done earlier in the year, you won’t have to pay as much for the one you want to buy (and the price difference between the two properties will be smaller – meaning you will end up saving money because of these reductions).
Therefore, what is the level of reduction being seen in the Portsmouth property market?
The average percentage of the price reduction in the Portsmouth area has been 6.2%.
We must stress house prices/values in Portsmouth haven’t dropped 6.2%, just the asking prices of some of the properties on the market.
This is good news for Portsmouth first-time buyers and landlords, as they will be more likely to buy a property at a more reasonable price whilst. As we explained above, this is also good news for sellers as most of them will end up paying less for the higher priced property they end up buying after selling theirs.
So, what should Portsmouth homeowners be aware of if they are selling their home now or in the future?
It is important that we inform all Portsmouth property owners of the real story. This enables them to judge for themselves where they stand in the current Portsmouth property market, thus enabling them to make better informed decisions.
You see some Portsmouth estate agents will deliberately over inflate the suggested initial asking price to the house seller, because it gives them a bigger chance to secure the property on that agent’s book, as opposed to a competitor.
This practice is called overvaluing.
Now of course, each Portsmouth homeowner wants to get the most for their home, yet some estate agents know this and prey on those Portsmouth house sellers.
You might ask, what is the problem with that?
Well, you only get one opportunity at hitting the Portsmouth property market as a new property. Everybody has access to the internet, social media and the four main property portals (Rightmove, Boomin, On The Market, Zoopla), and your potential buyers will know the property market like the back of their hand.
If you have a 2-bed Portsmouth semi that is on the market for a 3-bed Portsmouth semi-detached house price … those Portsmouth buyers will ignore you.
Your Portsmouth property will stick on the market as your potential buyers keep seeing your property on the portals each week.
These buyers will then start to believe there is something wrong with your property and dismiss it even further. That is until you, as the house seller, reduce your asking price. The issue is that sometimes these buyers will think something is wrong with your home and could bid you down even further, meaning you will get less even though you asked for more! (This was backed up by some research done by Which?).
Now according to research by Denton House, the average British house buyer only views around six properties before buying – so please don’t assume viewers will come round your optimistically priced (i.e., overvalued) Portsmouth home, thinking they will knock you down – quite the opposite – they just won’t view your home in the first place.
And you know that because I bet you have done the same yourself when searching for property.
So, all we suggest is this… Be realistic with your asking price to start with.
Do that and you will sell your Portsmouth property at a decent price to a decent buyer… First time, every time – enabling you to move onto the next chapter of your life.
If you know of anyone currently selling their home in the Portsmouth area and finding things difficult, please share this article with them as it could be of interest.