Nearly 17 percent of homes now selling below asking price

More sellers are having to lower their asking prices because their homes are not selling, Huispedia reported in a press release on Thursday. In the third quarter, 11,916 homes sold below the asking price - nearly 17 percent of all properties. In the second quarter, just over 14 percent of homes sold for less than the asking price.

On average, sellers lowered their asking price by €40,850 in the third quarter. Half of the reductions amounted to €25,000 or less. There is usually an uptick in price reductions after the summer, but according to Huispedia, this year’s increase was nearly 1.5 times greater than usual.

At the same time, the majority of homes continue to sell quickly and well above their asking price. 70 percent of the properties where the asking price was not reduced sold for above their asking price.

“There are essentially two markets now,” said Huispedia CEO Maxim Bours. "Homes that are priced correctly from day one still sell quickly and well above the asking price. Homes that are priced too high simply sit on the market. The difference lies in the sales strategy."

According to Bours, a property that is listed for too high a price rarely recovers. "An asking price that is too high might feel like it provides room for negotiation, but it doesn't. It’s just wasted time, and your property can end up 'tainted.' Buyers can see exactly how long a home has been on the market and whether the price has already been lowered. Consequently, they either make a lower offer or choose not to bid at all."

Huispedia also noted that the increasing mortgage interest rates were reflected in the bidding behavior last quarter. “At the beginning of the quarter, the average bid above the asking price was 5.4 percent; by the end, it was 4.7 percent. If interest rates remain at this level, we expect the practice of overbidding to level off further in the fourth quarter.”