Sellers across all ranges of property are too optimistic on prices, according to the National Association of Estate Agents’ (NAEA) latest property analysis.
The analysis shows that whilst small, two bedroom homes did actually rise in value between January and February, along with exclusive, top end executive properties, “family” three and four bedroom homes saw their value plummet month on month.
Commenting, Peter Bolton King, chief executive of the NAEA, said: “The NAEA’s property analysis reveals in depth what is happening in the housing market – and show how hard middle class families in three bedroom homes are being hit by the property slump.
“Smaller houses actually saw their value increase – this suggests that people who are buying are picking up smaller houses than they may have done previously, possibly because they can only get smaller mortgages. It may also reflect a trend of downsizing.
“The very top end of the market has also performed well, demonstrating not only that the very rich can still afford a high end property, but that with plummeting interest rates are now perhaps more tempted to put their money into bricks and mortar.
“Sellers are also consistently over-pricing their properties across the market, and inevitably having to accept a cut in price in order to achieve a sale.”