Propertymark: The market is moving but below asking price

Agents are continuing to secure instructions and sales but transactions are mainly being done below asking price, data suggests.

Agency trade body Propertymark’s latest housing market report shows 75% of members who responded to its survey reported that sales agreed were below the asking price.

This is similar to January but up 55 percentage points since February last year, showing just how much the market has changed.

The report found that the average number of new prospective buyers registered per member branch rose from 70 in January to 94 in February, which Propertymark said, suggests buyers have not been put off looking for a new home by rising interest rates. 

The average number of viewings per property was at three compared with the low of 1.8 in December.

Supply of new homes for sale per member branch returned to 10 per branch in February from nine a month before.

At the same time, the average number of sales agreed per member branch rose from six in January to eight in February, which is the same level as a year before.

Total stock of properties available per member branch continued to inch up in February and now stands at 32 on average per member branch, Propertymark said.

Nathan Emerson, chief executive of Propertymark, said: “There has been a lot of doomy whispers about the housing market since last autumn, but the activity being seen by Propertymark agents paints a robust picture. 

“Transaction levels year on year have been stable and listings of new properties coming to the market have also been steady. 

“Any indicators of something negative on the horizon would see these figures dropping below previous years. Prices have been affected by rising interest rates, but sellers are still keen to keep moving, and whilst interest rates are expected to rise again, they are not expected to climb excessively higher before reaching a level footing.”