"Should I sell or hold out for more" - this is the terrible dilemma facing anyone trying to sell something.
The chart above reeks of seller angst. In the immediate post-crisis period, sellers were desperate. Prices were collapsing, credit was tight, and the economy was tumbling into the longest recession this side of the second world war. Settlement prices fell from 93 percent of the asking price to 88 percent. On average, sellers were offering a 12 percent discount on estate agent window prices.
By the middle of 2009, sellers started to calm down and slowly the ratio of settlement to asking price began to increase. Unsurprisingly, this coincided with a recovery in prices.
But what is happening now? Since the summer, the ratio has started to slip south. Is this something seasonal, or is the housing market starting to weaken again?
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