Housing market in stalemate

03 March 2005
Research has shown that a difference of opinion between buyers and sellers is resulting in a stalemate.

Propertyfinder.com has revealed that whilst sellers are optimistic about house prices, expecting them to rise 3.5 per cent over the year, buyers are more guarded, expecting a rise of 0.7 per cent.

The difference becomes most pronounced in asking prices, according to the property website.

In February, the site asserts, buyers made offers on average 5.2 per cent below asking prices, while sellers said they would only accept bids three per cent under their initial valuation.

"There's no meeting of minds between sellers and buyers at the moment and stalemate is the result. Bargain-hungry buyers face stubborn sellers who won't budge," commented Jim Buckle, managing director of propertyfinder.com.

Mr Buckle added that he believed buyers were often asking too much.

"People who are selling their homes are not being realistic on prices and clearly believe they are giving potential buyers a good deal with their asking price," he stated.

"Buyers will stay in the slow lane for now, until sellers reduce asking prices modestly to more attractive levels."

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