Number of homes selling above asking price falls as market softens: NAEA

The number of properties achieving prices over the asking price dropped from 37% in August to 27% in September according to data from NAEA Propertymark, who says that this "could signal the end of bidding wars".

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Rozi Jones
28th October 2021
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"Sales being agreed has increased, but the number of sales achieving over the asking price has reduced, meaning we may start to see an end to the bidding wars that have been so prevalent."

However activity is still strong as the number of sales agreed per branch rose from 9 in August to 11 in September.

Additionally, the average number of house hunters registered per estate agent branch stood at 458 in September, showing a steady increase from 435 in August and 428 in July.

The number of properties being marketed is continuing to hold at 23 per branch in September, the same as in August. NAEA says this figure is "uncharacteristically low" and year-on-year is a 44% decrease from September 2020. Agents contribute this low figure to "unrelenting demand" meaning properties are being sold faster than new ones are coming to market.

The number of sales made to first-time buyers is holding stead at 27%, a marginal fall from 28% in August, however the number of buy-to-let sales fell from 11% to 9%.

Nathan Emerson, chief executive of Propertymark, commented: “Figures from September tell an interesting story of a market that may be beginning to shift. Sales being agreed has increased, but the number of sales achieving over the asking price has reduced, meaning we may start to see an end to the bidding wars that have been so prevalent.

"It’s also interesting to note that although the number of properties available to buy is lower than we have seen before in September, it hasn’t dropped since August meaning that just enough properties are coming to market to satisfy demand.”

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