Properties relisted at pre-COVID prices - are sellers in cuckoo land?

[househunter2020]

Started property search in February (London) and saw various properties quickly sold, obviously riding on post election bounce. We did not put in offer for any. Now we are seeing from this week properties that were sold get relisted at previous asking price (Jan/ Feb time). Are sellers in cuckoo land?

Just spoke to one agent about one relisting and asked if seller is reducing the price and was told oh that one was priced very well already and sold straight away last time it was listed, only now the buyer pulled out due to work problems... Of course it was February or a century ago...

I would expect about 5% reduction from previous listing. What do you think?

I think that there will be another bounce right now due to the number of people that may have been keen to move in March and are now even keener you move two months later. It’s always worth a punt for them.

I would expect them to have moderated their expectations, of not the asking price, but I would expect the EA not to tell you that - their job is to sell it for max £££.

At the end of they day the asking price doesn’t matter - they’ll get the offers the get. But I agree it’ll become a bit more of a buyers market.

We are going to re-list soon (london) and would be happy to list for less if other properties do (as we’re buying “up”, so selling for less and buying for less is better for us).

But locally, I haven’t seen any price drop - post lockdown - at all.

So I’m wondering if there isn’t (yet) one. I suppose we’ll see if buyers come in. A place is only worth what someone is willing to pay for it, after all.

It’s too soon I think...wait a bit if you can! I suspect a lot of people will pull their homes off the market - only those who desperately need to sell will end up lowering prices.

I really think anybody hoping for a crash in property prices may be disappointed

I've seen some come on this week and been surprised there isn't a drop. Mainly because people are going to find it difficult to get mortgages for the same amounts as pre Covid, so you'd think there would be a small price drop at least. Maybe that's not how it works!

I wasn't expecting much of a drop, but surprised at the prices seem to be completely unchanged. We are in London, so it seems unlikely there will be a big drop.

I don't really know, but we are getting towards putting our house on the market and had it valued pre-covid. I spoke to our likely agent yesterday and he thinks it should still go on at the pre-covid valuation. He reports they have been incredibly busy since restrictions on estate agents were lifted, with lots of buyers looking.
I am not naive and do wonder how much of it is bluster to get our business, but if the vendors can still sell at pre-covid prices then they should crack on surely?
Maybe prices will drop in time, or maybe they won't.

It is uncertain how many jobs will be lost and how fast we bounce back from this.. It if its short term I wouldn't expect and drops... I certainly none in the south west

I agree! It seems like they are keeping pre-Covid prices on listings even though I imagine they know some negotiations will take place.
We were about to buy late Feb/early March on an agreed price but are now holding on until we see how prices go and can make a revised offer. We won’t buy at Feb prices for sure!
The longer they keep prices the same the longer buyers will hold off I imagine, even for people that are between properties like us (sold late 2019) it is safer to rent for a bit longer.

We offered on a property today that was listed cheaply. It went to best and final offers and went for 15% over the list price. So not everyone is in cloud cuckoo land. I'm gutted we didn't secure it but as we haven't sold yet it was always a long shot.

Having recently bought and moved home I have been having a look on rightmove every now and again to see how much our property has lost already.....but so far I'm seeing new houses listed for around £50k more than they were before covid! We bought our 3 bed fo £325k. Now seeing new listing of 3 bed to £375k +.

I don’t expect a massive drop especially in London but the market in Feb and early March was extremely buoyant so prices were riding really high.

Any relisting now should reflect the fact that such buoyance has completely fallen away and a return to more subdued market similar to this time last year when we had all that mad Brexit wrangle on a daily basis. And CV is having a much more serious impact than Brexit because of real job loss and recession. Brexit was all about politics. That’s why I think Feb prices are no longer sustainable.

Lol I've noticed this. I've also seen quite a few priced higher in some sort if attempt to negotiate down their original price.

Silly thing is they won't get passed surveyors without some sort of reduction anyway.

I'm sure agents have a hand to play in this too.

Give them a call and they all say sellers are willing to accept offers, or, willing to accept offers when they see how the situation unfolds.

I think those that reduce slightly now will be the best served. The dillusional ones will just waste time and have to reduce more later.

Everyone I know in the market is watching and waiting. Those that are in a rush are looking at those priced 5-10% below their previous prices.

Yes, there are some buyers with seemingly little financial awareness, but on the inside, I know at least 80% of the market is watching and waiting.

It might be worth holding out for a lucky buyer, but the odds are not on the vendors side.

Although, I can see why you wouldn't want to sell lower if it's not being passed up the chain yet. However, I think you'd still be better off doing that now and breaking chain. Then, re entering the market chain free!

As FTBers in a very proceed-able position we’re assuming sellers are being optimistic (fair enough) at persisting with pre-Covid list prices. We’re hoping to get viewing ASAP and will be making lower offers, and accordingly are also looking at properties that previously would have been just out of our budget as well with the hope that we may be able to knock them down a little. Sellers can only say no, if you don’t ask you don’t get. We’re also assuming that people still on the market/coming on the market now actually need to move.

In the area I am in prices are not being lowered as any drops are not being passed up the chain. It kind of artificially inflates prices but it costs money to sell, there’s virtually no rentals available so everyone just sits tight. It takes awhile but everything does sell. There are lots of disappointed first time buyers and investment buyers.

I have seen multiple properties STC in Feb coming back to market on same asking price.

My theory is that vendors must be expecting lower offers if they want to sell. They just don’t know how much lower it will be. Like said above, everyone is watching the market.

I think once we have sales data post lockdown published (so those completed now after potential renegotiation) asking price should change accordingly.

Or maybe there are vendors/ agents think “oh buyers now demand 20% discount so let’s raise asking price by 25% then everyone will think they got a good deal” (eyeroll)

my house is back on the market after three offers well over asking in Feb. Didn't take highest one. unfortunately sale fell through just before exchange in April. It is all done up and ready to go and so I have put it back on today and have a viewing tomorrow. Back on at pre Covid price. Will see what happens. I wouldn't start selling a house at the moment if I was considering it, but everything is geared ready to go so giving it a test. I'm not interested in lowball offers but open minded to see how things go. I can afford to wait or change tack.

My theory is that vendors must be expecting lower offers if they want to sell. They just don’t know how much lower it will be.
Exactly - those at the bottom chance their arm, and find the level at which the sellers will bite, which depends on each individual circumstance. There are a fair few chain-free properties on our radar. Perhaps the market price ends up being dictated by FTB to chain free seller transactions?

I think there's pent up demand from those that need to move and can move. That demand will keep the market up for a few months but as we dip properly into a recession prices will inevitably come down

There's also pent-up supply of probate properties, for obvious reasons. I think that estate agents are currently hiking many asking prices to then "entertain a cheeky offer".

An estate agent that I trust came round today to value my property as I have seen a house I'd really like to buy. He gave me a much better valuation than last summer 2019 and better than early 2018. I do live in a very desirable green family friendly part of London with outstanding state schools and he has seen a lot of optimism from potential buyers. It was encouraging.

New listings have definitely not dropped here and a couple have sold over the last few days.

A few sales falling through in my area and some modest reductions, but yes most at pre Covid prices. I’m in north Leeds.
Looking to buy but waiting to see how things play out, the chancellor’s speech today was sobering.