AIBU to wonder why our fairly priced new-build house is not selling?

Sure but house prices relative to incomes were a small fraction of what they are now. You can't compare the two scenarios directly.

You buy what you can afford.
When we purchased our first house in the early 90's, the interest rate was 14.8%

I think prices are stalling and buyers are more cautious on their affordability than a few years ago. Many people under 40 haven't owned property or known a time when mortgages weren't sub 2%. Now they're back to 4-5% and there is definately uncertainty over if they'll rise further people are rightly thinking they can't afford the same house the felt they could 5 years ago as the monthly cost is a lot higher, or the term would need to be longer, or they just can't afford it if the next rate rise is at 7 or 8% for example. Some very quick calculations assuming borrowing a £500,000 mortgage over 25 years:
At 2% Interest: (approx) £2,120 per month
At 5% Interest: (approx) £2,923 per month
At 8% Interest: (approx) £3,859 per month

There is a really well known firm of estate agents in Dublin where I live.
I notice houses in my area with that particular EA’s board up languish for months and months on the market.
I have seen vendors change said estate agents and their houses then sell fairly quickly.

The EA agent wants your business and knows if the house does not sell, then you the seller, will reduce the price. They still get their commission

I mentioned in a previous message on this thread...Several EA's wanted to price our house too high, they will tell you what they think you want to hear just to get your business. I've been watching the market for several months and advised the EA to price £20k below their suggested price as I felt this was the rue price. Even in a difficult market we had 12 viewings. House sold for £13k over our start price in 2 days.

What I had noted, was that houses were going on too high and then the seller was playing catch up by reducing the price several times. After a few weeks on the market, people start to wonder what is wrong with property. EA's don't know what your house is really worth. The market will dictate. A house priced correctly will always sell.
If you are able to watch on youtube ' Moving Home With Charlie' He will explain why your house is not selling. He is an EA with many years experience and gives sound advice to both Sellers and buyers. I would suggest that you watch his ' 10 golden Rules For Home Sellers' he also has '10 golden rules for buyers' which is also excellent. We followed his advice and sold in 2 days. Hope that helps you xx

What did the OP pay for it?

I think this thread just shows how absolutely mad prices are now though. The assumption is that this is a mid income house, but the mortgage payment for most people would be over £3k per month, and you'd need two parents both earning more than £100k to bring that in line with long term advice on housing costs as a share of income.

Agree, so much of the 00s market was fuelled by huge equity gains & cheap lending. People buying their first property 5 years ago & now maybe thinking if moving often don't have the equity to make the jump. I think this is still just starting to play out. Flats have stagnated and now it’s going to hit the homes that those flat buyers would have moved up too.

Think about house prices and what a lot of money gets you, there aren’t enough people earning the wages to sustain.

That’s just not true - when the market’s slow everything lingers. In London the market is 80% down, everyone is waiting to see what happens with Iraq.

There is nothing to stop buyers putting in a lowball offer.

Some MNers have thus fervent belief that if you price a property too high it won’t sell, whereas in fact it just sells at below ask.

I know others have said similar throughout the thread and Im just picking up the latest one of this theme, but I never understand why people state that EA price badly for their own interests

If they over value, over price, then they dont sell it. Leading to 3% of zero

If they price well then they have 3% of the selling price

How is it in their interests to deliberately set a price which isnt going to garner a sale just because its higher?

You pay them, providing that they actually manage to sell your home so you direct them about whether to reduce the price or not. They haven't sold your house in 3 months they are incorrect. The reason there aren't many buyers out there is because people can't afford the prices, are worried about their jobs, the economy, more inflation hitting the world soon, etc. There are so many estate agents who don't seem to be able to do their jobs properly.

Clearly, your EA does not have your best interests. The longer a property is on the market, the more likelihood is that any potential buyers will believe that there is an issue with the property. Price it correctly, it WILL sell!!!!

I think the pricing til recently would've assumed a combination of both a very chunky deposit based on years of mostly unearned equity and lots of people being able to port existing mortgages at low rates. You're right though, that's a mess and it's going to unravel.

I think this thread just shows how absolutely mad prices are now though. The assumption is that this is a mid income house, but the mortgage payment for most people would be over £3k per month, and you'd need two parents both earning more than £100k to bring that in line with long term advice on housing costs as a share of income.

We have fucked housing up so badly. My mortgage is just over half of that on a monthly basis and it still scares me every month.

I actually think we know the answer to this. We have to build and let prices fall as they have risen, over the long term. It is going to kill my generation financially, but what other option is there when so much money has already been taken out of housing by the generation above those having families now?

I would sell at whatever price you can manage - but to secure somewhere to stay really long term. Otherwise it isn't worth it.

Three houses here have gone on the market this year at over £1 million. All three sold in weeks. The market generally is a buyers’ market but sensibly priced properties are still selling, even at the upper end.

I'm sure they have! But it isn't their house, only their commission. What level of drop are you considering?

The property market above 600k has really cooled. People are staying put, interest rates, job security, increased costs of moving.

You are priced for last year’s market, not this year’s market.

You want to drop the price
drop the price
the EA is not the boss

2 months on the market
not even a second viewing
substantial price drop and still only 2 viewings
and no more lined up

It is not “fairly priced” for the prevailing market.

The hard evidence is clear though - it’s not “fairly priced” . Otherwise you wouldn’t be in this position asking mumsnet why no interest.

Timing is everything when it comes to buying and selling anything.
Nobody should be moving house with all the expense that comes with it unless it’s absolutely necessary
Just sit tight