Are Norwich Property Prices Reducing As The Property Market Stabilises?

Are Norwich Property Prices Reducing As The Property Market Stabilises?
  • 725 of the 2,282 properties on the market in the Norwich area have had a price reduction in the last 3 months.  

  • The average reduction has been 6.2% of the original asking price. 

  • This is great news for Norwich home buyers and Norwich buy-to-let landlords, strangely Norwich house sellers as well. 

     

The last couple of years of the Norwich property market has seen some amazing prices being achieved with multiple offers and many properties selling for way over the asking price.  

 

As I have been writing about the Norwich property market over the last few weeks, the tide is beginning to turn, and pendulum swing more towards a balanced Norwich property market as more homeowners in the Norwich area (NR1 – NR16) have been reducing their asking prices.  

 

Of the 2,282 properties for sale in the Norwich area, 725 have been reduced in price in the last 3 months. 

 

This can be broken down as follows… 

 

 

Price Range of the Norwich Property  Number of Price Reductions in Last 3 Months 
£0-£50k  7 
£50k-£100k  9 
£100k-£150k  25 
£150k-£200k  55 
£200k-£250k  112 
£250k-£300k  120 
£300k-£350k  83 
£350k-£400k  77 
£400k-£500k  104 
£500k-£600k  66 
£600k-£750k  25 
£750k-£1m  23 
£1m-£2m  15 
£2m-£3m  3 
£3m-£5m  1 

 

 

So why is this important and why is this good news, even for Norwich house sellers? 

 

Property industry statistics show that 5 out of 6 house sellers will buy another property and over 80% of those sellers will move up the property ladder. 

 

When you move up the property ladder, that normally means you pay more for the one you want to move to (that is why it is called the property ladder). 

 

So, whilst you will not be getting as much for yours as you might have done earlier in the year, you will not have to pay as much for the one you want to buy (and the price difference between the two properties will be smaller – meaning you will end up saving money because of these reductions).  

 

Therefore, what is the level of reduction being seen in the Norwich property market? 

 

The average percentage of the price reduction in the Norwich area has been 6.2%. 

 

I must stress house prices/values in Norwich have not dropped 6.2%, just the asking prices of some of the properties on the market. 

 

This is good news for Norwich first-time buyers and landlords, as they will be more likely to buy a property at a more reasonable price whilst. As I explained above, this is also good news for sellers as most of them will end up paying less for the higher priced property they end up buying after selling theirs. 

 

So, what should Norwich homeowners be aware of if they are selling their home now or in the future? 

 

For me it is important that I inform all Norwich property owners of the real story. This enables them to judge for themselves where they stand in the current Norwich property market, thus enabling them to make better informed decisions. 

 

You see some Norwich estate agents will deliberately over inflate the suggested initial asking price to the house seller, because it gives them a bigger chance to secure the property on that agent’s book, as opposed to a competitor. 

 

This practice is called overvaluing.  

 

Now of course, each Norwich homeowner wants to get the most for their home, yet some estate agents know this and prey on those Norwich house sellers.  

 

You might ask, what is the problem with that? 

 

Well, you only get one opportunity at hitting the Norwich property market as a new property. Everybody has access to the internet, social media and the four main property portals (Rightmove, Boomin, On The Market, Zoopla), and your potential buyers will know the property market like the back of their hand.  

 

If you have a 2-bed Norwich semi that is on the market for a 3-bed Norwich semi-detached house price … those Norwich buyers will ignore you. 

 

Your Norwich property will stick on the market as your potential buyers keep seeing your property on the portals each week. 

 

These buyers will then start to believe there is something wrong with your property and dismiss it even further. That is until you, as the house seller, reduce your asking price. The issue is that sometimes these buyers will think something is wrong with your home and could bid you down even further, meaning you will get less even though you asked for more! (This was backed up by some research done by Which?). 

 

Now according to research by Denton House, the average British house buyer only views around six properties before buying – so please do not assume viewers will come round your optimistically priced (i.e., overvalued) Norwich home, thinking they will knock you down – quite the opposite – they just will not view your home in the first place. 

 

And you know that because I bet you have done the same yourself when searching for property.

 

So, all I suggest is this… be realistic with your asking price to start with. 

 

Do that and you will sell your Norwich property at a decent price to a decent buyer … first time, every time – enabling you to move onto the next chapter of your life.  

 

If you know of anyone currently selling their home in the Norwich area and finding things difficult, please share this article with them.

Stats from ZPG, TwentyCi, Office of National Stats and Denton House Research

 

Nick Eley, Partner, Head of Sales & Lettings

 

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Whether you’re on the hunt for your first home or have owned your home for many years, our team really will go the extra mile to provide a first-class buying and selling experience. With excellent knowledge of Norfolk and decades of experience, we’re with you every step of the way.

 

Watsons Property

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