Why are properties taking longer to sell?

There are several reasons why properties are taking longer to sell. Here we have highlighted the key areas that determine the flow of sales in the housing market;

Market Conditions – The housing market is always influenced by supply and demand dynamics. If there is an oversupply of properties on the market, it can take longer for individual properties to attract buyers. Additionally, if demand for houses is low due to economic factors or changes in buyer preferences, properties will take longer to sell.

Pricing – Regardless of market conditions, if a property is priced correctly, it will sell. An asking price is there to attract buyers. If the asking price is set to high, it will do the opposite and deter serious and relevant buyers from expressing an interest. Competitively priced properties will generate the most interest and sell the fastest.

Location – The location of a property will significantly impact its marketability. Properties in less desirable and remote locations with limited amenities can take longer to sell when compared to properties in well-established and popular neighbourhoods.

Property Condition – This is always a factor for potential buyers. If a property requires extensive repairs or renovations, it may take longer to find a buyer willing to take on the refurbishment work. Houses that are ready to move into or that have recently been updated,
typically gain a premium and sell quicker.

Financing Challenges – Difficulties in buyers obtaining finance will contribute to longer selling periods. If potential buyers face stricter lending requirements, higher interest rates, or limited access to mortgage loans, it can reduce the pool of qualified buyers and extend the time it takes to sell a property.

Marketing & Exposure – Effective marketing is critical to the chances of a successful property sale. Immaculately presented, professional photography, with a detailed floor plan and video are expected by buyers in the current market. It shows that the seller and their agent, have taken the time and expense to prepare the property correctly for the market. An active and well-followed social media presence is also important. If the property is presented poorly and not promoted to the widest possible audience, the chances of a successful sale are slim.

Season Factors – The market will experience highs and lows in a calendar year. Typically, Spring, and early Autumn are the busiest periods for property sales. School holidays and the festive period in particular, are renowned for markets being subdued.

Current reports have shown the level of sales agreed has fallen below the normal market trend for this time of year but the
"right-priced" properties are still shifting.

Annual asking price growth was 0.5%, its lowest level since November 2019. Average asking prices are still 2.6% higher than in January.

The portal suggested this means the Bank of England’s rate hikes and higher mortgage pricing is biting, although buyer demand remains
3% higher than at this time in 2019.

If you are thinking of selling and would like expert advice, please contact your local Butler & Stag office.

Published on: 1 Aug 2023

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