Nearly half of consumers believe that properties for sale in their local areas are over-priced, but only a quarter expect prices to drop in the next 12 months.
In a huge survey of over 32,000 people, just over 41% expect asking prices to be about the same in a year’s time. Only 3.2% expect house prices to fall by over 10%, whilst 7% believe house prices will rise by at least 10%. Overall, 26.2% believe house prices will rise and 26.9% believe prices will fall.
The Rightmove ‘consumer confidence’ survey found that the proportion of people forecasting house price stability has risen for seven consecutive quarters, and is now at the highest point recorded by Rightmove.
Last week Rightmove launched a campaign aimed at telling sellers to tone down their expectations of pricing.
However, its new survey, published this morning, suggests that many people think they have seen the end of price falls.
There are major local variations in sentiment.
Overall, 45.4% believe that property in their local area is over-priced, with just 23% believing they are over-priced by more than 10%. Oxford comes top of the ‘over-priced’ league, with 65% of locals sharing that opinion, while Great London was judged the most over-priced region (63.2% took that view).
Almost the same proportions felt that the South-East and South-West are over-priced (56.7% and 56.5% respectively). East Anglia was regarded as over-priced by 49.2%, Wales by 47.2% and the North West by 46.3%.
In central London, 11.8% of respondents are forecasting that prices will have gone up by over 10% in a year’s time. By contrast, there is an expectation of falls of 10% or more in Preston, Aberdeen and Blackpool.
Rightmove director Miles Shipside said: “With nearly half of people feeling that homes for sale around them are over-priced, you might expect a similar number of them to be forecasting price falls.
“Instead a price paradox prevails, and those wanting to enter the property market may have to accept that it is likely to be at a price they feel is excessive.
“Unless this scenario changes in favour of homes being perceived as better value, this may deter some from rushing back to buy when mortgages become more readily available.”