Price hopes scaled back as house sales slow

Price hopes scaled back as house sales slow

People struggling to sell their houses are offering more discounts and some are turning to auction houses in hopes of a quicker sale as a slowing property market forces them to scale back price expectations. Asking prices have been cut on 10 per cent of properties on the market in November, whereas just 5.8 per cent of stock had been discounted in the same month last year, according to a Lehmans analysis of data from the Spicerhaart group of estate agents. Results from recent auctions - where sellers are usually keen to strike a deal fast - suggest more properties are remaining unsold after failing to reach their reserve prices in the sale room, while some auction houses are reporting an influx of new customers who have failed to sell their property through estate agents. “The auction results that we have been tracking suggest that a substantial gap has opened up between the price that buyers are willing to pay and that which sellers are expecting to achieve,” said Alan Castle, economist at Lehmans.