Propertymark: 'Asking prices are still too high'

Further adjustments in house prices are needed to match valuations with market expectations, Propertymark has warned.

It comes as the agency trade body’s housing report for December highlighted the usual seasonal slump for December, but warned of long-term downward trends for members.

Propertymark members reported that the average number of new prospective buyers registered per branch reduced from 49 in November to 34 in December, while there were on average just five homes placed for sale per member branch in December, compared with six in November and nine in October.

The average stock of properties available for sale per member branch remained static in December, while the average number of market appraisals conducted per member branch decreased in the run up to Christmas from 16 in November 2023 to 10 in December.

With stock levels also down, Propertymark warned supply is likely to be constrained in January. 

The number of sales agreed per member branch also decreased to four in December 2023 from six in November 2023. 

There was also a “slight increase” in the percentage of agents reporting that properties were selling for less than asking price – at around 90% of members - and a slight decrease in the number reporting that properties were selling at asking price – at under 10%.

Propertymark’s report suggested “valuations and market expectations remain misaligned.”

Nathan Emerson, chief executive of Propertymark, said: “We have reached the trough of the seasonal trend that begins in Autumn and runs to Christmas. Key supply and demand indicators, such as the number of buyers registered and number of new sales instructions, are at their lowest points in the year.

“As we head into 2024, pressures remain on house prices, with further adjustments required to match valuations to market expectations.”