Property dreams on edge as asking prices tumble
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Asking prices fall 1.2%
Monday, 23 Jun 2008 00:01
Property asking prices fell 1,.2 per cent in June, as the property crash gathers steam.
The online property portal Rightmove.co.uk measured 154,806 asking prices over the course of the month, finding the average cost had fallen 1.2 per cent.
This compares to a rise of 1.2 per cent in May – with prices up just 0.1 per cent year-on-year.
The survey corroborates those of Nationwide and Halifax, both of which have found a sharp correction in prices in recent months, with annual growth down 3.8 and 4.4 per cent respectively.
According to Rightmove, the average asking price for a property in the UK is now some £239,564.
There are now over a million properties for sale, with 15 properties available for each buyer, finds the survey.
Each estate agent has some 75 properties on offer, up from 73 in May.
This is double the figure for June 2007, with would be homebuyers unable to secure finance for properties purchases, according to Rightmove.
"In spite of the lowest housing transactions for 30 years, new sellers had been coming to the market asking record prices," said Miles Shipside, commercial director of Rightmove.
"It was a mad state of affairs that defied the laws of economics. Thankfully, new sellers are now taking some proactive steps to price more realistically from the outset to attract increasingly hard-pressed buyers."
Price falls were most dramatic in the East Midlands, with average asking prices down 3.5 per cent over the course of the last year to June.
The West Midlands and north-west also saw average asking prices down three per cent.
In contrast, London has seen average asking prices increase by 2.9 per cent over the past year.
"Estate agents now have to market like pros and sellers have to provide them with the right raw material," explained Mr Shipside.
"Once you’ve sold, this is a great market for trading up; with opportunity to negotiate a reduction on the one you are buying and moving into a sought after area where there is normally restricted choice."
Chris O'Toole