A majority of houses have sold for less than the original asking price in August, as the coronavirus continues to wreak havoc in the property market.
About 53% of houses sold below the market price, according to a study by NAEA Propertymark, a professional body for those working in real estate.
The report also found that properties that sold for more than their asking price reached a five-year high last month, with one in eight (13%) beating their targets, despite a marginal fall in housing demand from July. These are the highest levels recorded since November 2015 and a rise from the 8% recorded in July and 10% recorded in June.
House sales are up in general. An average of 12 sales were recorded per estate agent branch, the highest level recorded for August in 13 years, although a decrease from 13 in July.
Watch: Why are house prices rising during a recession?
Alongside this, the number of properties available per member branch stood at 40 in August, falling marginally from 43 in July, according to the report.
Year-on-year, the number of sales per branch has increased by 33%, rising from nine in August 2019.
Mark Hayward, CEO of NAEA Propertymark said: “It’s interesting to see that one in eight properties sold for more than asking price in August this year. Last month, we witnessed a boom in the number of prospective buyers following the government’s announcement of a stamp duty holiday, and it seems this is increasing the level of competition in the property market.
“With the increase in the number of prospective buyers since this announcement, many buyers are clearly willing to pay over the asking price in order to secure their dream home.”
This analysis comes as others in the market say they do not expect house prices to rise in 2021.
Research also concurred with Zoopla’s house price index data released this morning, that sales to first time buyers (FTBs) were in decline. NAEA concluded that the number of sales made to FTBs stood at 23% in August, a fall from 25% in July.
Watch: What do stamp duty cuts mean for buyers and house prices?