Sellers are reducing their asking prices as realisation dawns.
Homeowners struggling to sell their properties in the current economic climate are being forced to cut their asking prices, new research shows. According to the property website Rightmove, asking prices have dropped by 2.9 percent this month compared to October.
Sellers are now asking for an average of £222,979 - down from £229,691 last month. Over the last year, asking prices have dropped by 7.1 percent, which according to Rightmove is the largest ever annual decline seen in November.
Miles Shipside, commercial director at the website, said: "While average asking prices have fallen by 7.1 percent over the past year, in most parts of the country you should look to at least double that discount to achieve a sale."
He suggested sellers could avoid "months of disillusionment and despair" and "cut out the months of asking price reductions" if they market their property at a lower price initially in order to lure buyers who are still facing restrictions on mortgage finance.
The figures come after a survey by Impartial.co.uk revealed that homeowners are radically underestimating how far property values have dropped in recent months. According to Land Registry data, prices fell by 6.1 percent in the third quarter of the year, yet homeowners believe they declined by just 0.1 percent.
