70% of homes put up for sale in 2011 remain unsold
The asking prices for homes in the UK have dropped for the first time this year according to new research carried out by property website Rightmove.
The website has revealed that 70 per cent of homes that have been put up for sale in 2011 are still waiting to attract a buyer. Increased competition amongst sellers to attract buyers during a period of low demand has led to asking prices falling by 1.6 per cent, the biggest July fall since 2008.
It says that the average asking price for a home on sale is £236,597. However, figures from the Department for Communities and Local Government (DCLG) state that the average selling price is just £203,528 which means that sellers and estate agents are over-valuing homes by around 16 per cent.
If the comparison is made of asking prices compared to the average house prices as calculated by the two most recognised regular monthly housing data indices compiled by the Halifax or Nationwide the gap is even wider.
The Halifax puts the cost of an average house at £163,049, a gap of 25 per cent, whilst Nationwide says that they stand at £168,205, a difference of 21 per cent.
Miles Shipside of Rightmove said: "Many equity-poor aspiring sellers will be trapped in their current homes, either unable to come to market or stuck on the market and unable to reduce to a price that will attract buyer interest.
"With seven out of ten properties marketed so far this year still on the market, sellers in the second half of 2011 need to do something different to promote their property and increase their chances of catching those elusive buyers".
Use the Myfinances.co.uk comparison tools to find the best deal on a new mortgage.
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