Asking Price Vs Sold Price
Many of us will often be aware of what price a property has been put on the market, but may not check what the property actually sold for and if the property was reduced in price in order to achieve the sale.
During 2009, 430 properties were registered sold at the Land Registry. Listed below are some of the key facts and figures.
Average sold price as a % of asking price: 90%
Average time to sell: 14 months
Percentage number of properties with reduced asking price: 43%
Average % reduction in market price of properties sold: 12%
2009 can clearly be seen as a year of price reductions. Over 40% of properties were reduced in price before an offer was accepted by the vendor. In addition, the average achieved price was still 12% below that of the price at which the property was advertised. It is interesting to note the 12% reduction in asking price for properties sold, was 2% higher than the 10% average price reduction recorded for all properties which were brought to market during 2009.
The average time to sell of 14 months was so high due to a significant number of properties from 2007 being dramatically reduced in price and therefore finding a buyer during 2009.
From the above analysis, it can only be concluded it was a good time to buy in 2009!!