Get real on house prices if you want to sell, RICS warns over optimistic home sellers

Published 10th Jan 2012

Home owners have been warned that they must price realistically if they want to sell, as the supply of properties put up for sale outstrips potential buyers.

The number of homes arriving on the market rose in December, at the same time as interest from new buyers continued to decline, the Royal Institution of Chartered Surveyors has reported.

And with its member estate agents forecasting that sales will not rise in the months ahead, those wanting to move have been told they must keep their estimation of their home’s value in check.

Ian Perry, RICS housing spokesperson, said: ‘The increasing number of prospective sellers who placed their homes on the market in December is a positive development as a lack of stock has been a big issue in some parts of the country but with sales expectations remaining flat, it is important that vendors are realistic in their pricing if they wish the sale to go through in good time.’

RICS added that unrealistic price expectations from some sellers were hindering transactions, which are languishing near record low levels, and with supply outstripping demand those who opt for hit and hope high asking prices may find their home left on the shelf.

The organisation’s December report revealed that 12 per cent more members reported a rise than fall in homes being put up for sale, outstripping the two per cent more members who reported a rise in new buyer enquiries rather than a fall.

It said prices continued to fall, with 16 per cent more surveyors reporting price falls than rises and sales expectations were flat – down from four per cent more suggesting a rise in sales in the coming months in November.

The average number of completed sales per estate agent in the three months to December was 15.2 and RICS said that although this was slightly down on November's figure, it was close to its best level since autumn 2010.

Interestingly, London saw the greatest increase in supply with surveyors reporting a net balance of +38 per cent - the highest figure since January 2005. If this is sustained it could bring a change in fortune for prices in the capital, which has been the only region to see prices rise recently with 46 per cent more RICS members reporting a rise than fall in December, something experts put down to wealthier buyers chasing a lack of quality homes for sale.

The West Midlands and Yorkshire and Humberside reported the biggest drops in December with net balance readings of -47 and -43 respectively. Dips look set to continue in the months ahead with 21 per cent more RICS members expecting prices to continue falling over the coming three months.

Source: ' ThisIsMoney '

View All Latest Articles