Asking prices slipped 2.7% over the last month, Rightmove reported this morning – and it urged sellers to get them down further.
The site said that asking prices finished 1.5% up on the year – and it expects them to move up another 2% next year, with prices underpinned by a shortage of new sellers.
It expects there to be fewer homes coming to the market in 2012 than there were in 2011, when Rightmove recorded 1.24 million.
But with the average asking price now standing at £225,766, there is still an enormous gulf between what sellers hope to achieve and what they actually get: the Land Registry is currently quoting an average selling price of £159,999, the Halifax is quoting £161,731 and Nationwide £165,798
Rightmove advised potential sellers that the only way to sell an average house is to market it at a ‘below average’ price.
It said that four years into the downturn, it is clear that it still has some way to run, with more difficult times ahead.
The site also said that the UK property market is extremely splintered: in the south, new seller asking prices are up 4.7%, compared with falls elsewhere.
Fragmented micro-markets mean that in Burton-on-Trent, asking prices are down 10% in the last year; just 13 miles away, asking prices in Tamworth have slipped 0.8% in the same period.
Rightmove director Miles Shipside said: “It is clear that in these turbulent times the UK housing market is made up of micro-markets that are performing very differently.
“Those that are involved in buying or selling next year need to understand their local market dynamics to help them deliver the right recipe for success.
“That will include gauging under- or over-supply of property types, buyer demographics and mortgage profiling, unemployment concerns and exposure to public sector cuts or the likelihood of external investment.”
Comments
Peebee - I dont know his trade or yours? but I believe his ire was aimed at Rightmove.
"What we in the trade call a 'win-lose' situation."
And what 'trade' would that be, precisely, Mr PoTW?
Oh dear Puzzled , so much anger you have my pity. Take care negative folk die younger, try to get some help to get over it.
Try moving somewhere cheaper and you may be able to afford to buy your own home, you will feel better than all this stress mate.
You worry me think of your loved ones before you consider anything stupid. Get help.
Anonymous Coward: "If in town A the average salary is £25k and you get a new couple wanting to buy a little house then the should be looking to pay £150-£200k."
Sorry - why THAT price band?
Brit1234: "asking prices are still far to high, in fact they are 33% higher than selling prices."
Earlier today I labelled 'Times Up' "an uninformed, blinkered buffoon"
Looks like there's a few in the room today. Do you all wear badges for identification?
Good news, however asking prices are still far to high, in fact they are 33% higher than selling prices.
Hi Tony
I was going to give you a long technical lecture on the merits of house prices measured against earnings but ended up thinking "Why bother"...
Yes you could pick another number, but that would be randomly picking a number. Yes each are of the country is different so some will be 15% and others 40%.
In the end though it is REAL affordability that counts.
If in town A the average salary is £25k and you get a new couple wanting to buy a little house then the should be looking to pay £150-£200k.
I am in Epsom, so average wages are higher, but not that much higher. A one bed flat will cost you £180-190k.
Three bed houses start at £275k for a pretty ropey specimen.
30% off would be about £75k off which would bring it all in line.
Just experience and common sense in the end.
"Rightmove... urged sellers to get them down further....
...and it expects them to move up another 2% next year, with prices underpinned by a shortage of new sellers."
So - they are therefore sowing the seeds in sellers minds to do WHAT, exactly?
Bring them down NOW, or put them UP in a fortnight?
Beggars belief.
What wasn't reported here was that Rightmove also asked estate agents to get 'em down, then bend over and wait for their Christmas pressie.
Anonymous Coward - house prices 20-30% too high? Why not pick another number? Surely 50%? Why not 80%? The truth is no one knows what house prices "ought" to be in any given area of the country, and all that matters is the price at which someone is prepared to pay and someone else is prepared to sell at a particular moment.
In the current market, many sellers cannot *afford* to drop their prices because they will be in negative equity, so quite understandably a huge proportion of sellers are simply testing the market and then removing their properties from sale unless they absolutely have to sell. Or they put their properties up for rent and are renting out their main house whilst renting themselves elsewhere.
Big RM fan - still think they are cheap, considering what I get from them.
Stop whinging about it.
Far more important is that house prices are 20-30% too high.
The news about enforcing "sensible" lending practices would be hilarious if it wasn't so bloody serious.
As I heard on Radio 4 this morning (god I'm old - when did that happen?) "I can't believe that these things weren't being done already..."
Get the asking prices down - which, in turn, will reduce agents' commission. Get those portal fees up!
What we in the trade call a 'win-lose' situation. They win, you lose.
So are Rightmove going to help their Loyal Agents with a Christmas Fee reduction or at least a card or bottle of cheer of Thank You phone call??? Chance would be a fine thing