As the housing market begins to recover from the effects of the coronavirus pandemic, Propertymark has reported that three quarters of homes are now selling below their asking price. This is a sign that buyer demand is returning and that the market is beginning to stabilize.
The data, which was collected from Propertymark’s network of estate agents, shows that the average discount on homes being sold is now 6.6%. This is up from 4.2% in April, when the market was at its lowest point. The discounts are most pronounced in London, where the average discount is 8.4%.
The news has been welcomed by buyers, who are now able to get more for their money. However, it is not all good news for sellers, who are having to accept lower offers than they were expecting. This is especially true for those who put their homes on the market before the pandemic hit.
The data also shows that the number of homes being sold has increased significantly since April. This is a sign that buyers are feeling more confident in the market and are willing to take the plunge and buy a property.
Propertymark’s Chief Executive, Mark Hayward, said: “The market is showing signs of recovery and buyers are taking advantage of the discounts being offered by sellers. We’re also seeing more buyers entering the market as they take advantage of the stamp duty holiday and low mortgage rates.”
The stamp duty holiday, which was introduced by the government to stimulate the housing market, has been credited with helping to boost buyer demand. The tax break means that buyers can save up to £15,000 on the purchase of a property.
It is clear that the housing market is beginning to recover from the effects of the pandemic. While sellers may not be getting as much as they were expecting for their homes, it is encouraging to see that buyer demand is returning and that the market is stabilizing.