Online agencies increase market share – but only in the under £1m market

The second quarter report from TwentyCi reveals that online agents increased their market share by 13% in the period April to June 2018.

Online estate agents now represent nearly 8% of all exchanges, an increase of 13% from Q1 to Q2.

In the last year, online agents have established a greater footprint across England, helped by significant investment in advertising and the introduction of more local property experts.

The report does not mention any brands in particular, but it is expected that key players like Emoov, Purplebricks and Yopa will all show healthy sales growth when their figures are released.

The share of the properties online agents represent has also grown, increasing by more than 30% in most price bands below £1m.

This is slightly surprising, as at the lower end of the market, there is not a huge saving to be made from a fixed fee sale, whereas a one-off cost would represent a massive saving for a £1m property.

Colin Bradshaw, TwentyCi’s Chief Customer Officer, comments:

“The growth in market share for online agents continues unabated, with this group now representing nearly 8% of all exchanges. It is interesting to note that almost all of this growth has been in properties below £1m. Logic might dictate that a fixed-price service would be more attractive to sellers of higher-priced properties, but perhaps this group of vendors is motivated by factors other than just price.”

Gareth John, Managing Director of Estate Agent Software specialist AgentPro said:

“The appetite for online sales is massive.  We have experienced massive growth this year as traditional estate agents want to capitalise on this by operating as a hybrid agency.  AgentPro is the perfect tool for them to do that, as well as supporting their high street operations.  However, the lack of appetite for digital platforms in the £1m plus market indicates that these customers are looking for the personal, specialist service that only a high street agent can offer.”

Other findings in the report include:

  • New instructions are up by 7% year on year
  • Smaller homes are the best sellers, with terraced and semi-detached houses accounting for over 55% of all exchanges.
  • Baby boomers’ appetite for property continues unabated, with exchanges up 10% year on year.
  • A review of 2017 listed prices compared to the price actually achieved shows an average discount of up to 4% for properties sold for less than £1m. The realised value of properties over £1m, however, shows an average discount of 8%.

 

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