Keeping quiet about new homes for sale has become a popular selling strategy in the UK, according to this week’s report from London-based agency Hamptons.
So far this year, 23% of London homes sold have been “carefully sold,” according to the report. That is, it did not appear on the real estate website and was not otherwise published. This is an increase from 20% in 2021.
Outside the city, 24% of transactions were made privately, the report said.
Indeed, one-tenth of homes sold across the UK were sold this year without being sold, the highest level since 2015. About 59% of these properties were not in London.
“Off-market sales have become an increasingly established sales strategy over the last five years,” said Aneisha Beveridge, Head of Research at the Hamptons, in a statement. “First-generation off-market sellers were primarily people who were concerned about the privacy of their homes. These sellers make up about half of the homes launched in the off-market, but in 2016, We’ve added homeowners in central London who are enthusiastic about minimizing digital. A footprint in an increasingly tough market. “
In addition, off-market listings tend to be higher priced properties. However, the data showed that the growing popularity of secret lists was driven by cheaper homes.
“Post-pandemic sales off-market are increasingly being driven by sellers who are enthusiastic about avoiding broader marketing and limiting the number of buyers through the door,” continued Beberridge. “This strategy is paying off. Buyers are willing to pay extras to keep their homes out of the market and prevent sellers from openly selling real estate to other competitive stakeholders. “
Indeed, according to the report, the average price of homes sold on the market so far this year was £ 858,000 (US $ 1.08 million) from £ 979,000 in 2021. In addition, the average home sold off-market reached £ 1.2 million in the five years before the pandemic began.
According to the report, unobtrusive sellers are also getting more for their homes. Off-market homes sold so far this year have averaged a record 99.5% of their asking price. Still, similar homes sold to a larger audience weren’t too late, averaging 99.1% of their initial asking price to date in 2022. This is also a record.
“We may have peaked off-market sales,” Beveridge said. “Buyers may be cautious about paying premiums in the face of more options, as the number of homes on the market is expected to increase by the end of the year.”