Manchester Property Market: The importance of realistic pricing
The property market landscape in the UK has undergone a notable transformation in recent years.
As of October 2021, an impressive 424,809 properties were up for sale across the country. Fast forward to the present, and that figure has now soared to 664,780, a remarkable increase of 56.5%. In terms of property sales in October 2021, a substantial 111,229 properties were sold subject to contract (STC). However, in October 2023, this number experienced a decline, with only 88,737 properties sold STC, representing a reduction of 20.3%.
Nonetheless, I delved deeper and analyzed the year-to-date (YTD) statistics for both 2021 and 2023. By the end of October 2021, the number of properties sold STC in the UK reached an impressive 1,252,108. In sharp contrast, the YTD data for 2023 showed a decrease, with property sales amounting to only 933,690, marking a significant reduction of 25.44%.
As an increasing number of properties floods the market, juxtaposed with a decline in house sales, we find ourselves in an intriguing situation within the property market. Particularly for Manchester, renowned for its rich history, excellent transportation links, and top-notch educational institutions, we need to ensure that our homes stand out amidst the growing inventory.
The dynamic landscape of the property market demands strategic positioning to capitalize on our unique selling propositions and ensure continued success.
The Danger of Overpricing your Home
Let's delve into an intriguing realm of property insights I've amassed throughout the years. There's a recurring pattern that unfolds when homeowners make the costly mistake of inflating their property's price, especially in a saturated market. Brace yourself for its dire consequences.
Diminished Interest: Today's digitized age empowers buyers with unprecedented knowledge. They meticulously compare homes on portals, and if yours appears exorbitantly priced in relation to similar properties, they may not even spare it a second glance, let alone schedule a viewing.
Extended Time on the Market: Overpriced homes tend to loiter on the market for extended durations. And the longer a home lingers unsold, the more prospective buyers ponder, "What's amiss?".
Stigmatized Listing: A home that overstays its welcome becomes stale, losing its allure. Even if you eventually reduce the price, the initial buzz surrounding the new listing dissipates. You are then forced to play catch-up, often resulting in a sale at a significantly reduced value compared to its accurate initial valuation.
Missed Opportunities: As the unsold property languishes, homeowners in Manchester may forfeit favorable mortgage rates for their next purchase or pass up on seizing their dream home that's just within reach.
The Power of Proper Pricing
Optimal pricing from the get-go offers a multitude of advantages. Not only does it entice a larger pool of potential buyers, but it augments the likelihood of multiple offers, potentially driving up the final sale price. Moreover, it facilitates a swifter sale, alleviating the uncertainty and stress that typically accompany the selling process.
Refuse to Succumb to Pessimism
It is vital to bear in mind that although we have witnessed a decline in property sales in 2023 compared to 2021, the property market remains in decent shape. It's worth emphasizing that year-to-date total UK house sales until the end of October 2023 merely amount to 94.0% of the average recorded in 2017/8/9. So, while the current landscape may be challenging, it isn't nearly as dire as some sensationalized newspapers would have you believe. Again, I implore you to prioritize realistic pricing.
What Should Manchester Homeowners Do?
For Manchester homeowners seeking to sell their homes, here's some expert advice:
Dive into the Manchester Property Market: Gain a thorough understanding of the current market dynamics and evaluate where your property stands. Analyze what's up for sale and what's been sold so far. Remember, research proves that Manchester properties typically sell within a 1% to 2% range of the final asking price.
Seek Guidance from Professionals: Consult with seasoned estate agents who possess extensive knowledge of the Manchester property market. Their insights on pricing can be truly invaluable.
Stay Realistic: Keep in mind that the ultimate goal is to sell your home promptly, rather than allowing it to linger on the market. An attractively priced home often leads to a quicker sale and a more favorable outcome overall.
The Manchester property market is in a constant state of flux. While the influx of new properties for sale presents challenges, it also offers lucrative opportunities for those who navigate wisely.
My message to Manchester homeowners is to avoid the pitfall of overpricing your home when it's time to sell. With a well-crafted strategy, fueled by meticulous research and expert knowledge, we can capitalize on the current scenario and ensure that your home finds its ideal buyers.
To all the residents of Manchester, here's to a successful selling process and a prosperous future in the world of real estate!