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.”
Comments
All the people surveyed are consumers? Bold claim that one Mr Shipside! Looking at The Golden Arches and commenting that Burgers taste like cardboard doesn't mean a thing.
Is everyone too stupid to realise that hits and visitors to a web site are only loosly linked to the sale of property.
I have 6 properties none of which have been found off the internet.
Sibley's...: Using yours AND AC's logic combined, Mr Seller wants too much for his house - then goes to buy from another Mr Seller who operates the same way.
Then there is no problem - is there? They are simply swapping one overpriced house for another...
Let them get on with it, I say!
AC, that's probably because, although they recognise that prices have fallen elsewhere, theirs is immune because:
They've given it a lick of paint.
Their house is in a desirable catchment area.
They've had a new kitchen fitted and want to re-coup the costs; I mean, they're not a charity y'know.
Their street is immune.
Etc etc etc ad nauseum.
That few?
Surely it should be closer to 100%?
As Vossy says right at the start...
Most vendors are buyers, but the number of properties where my owner demands asking and then goes off to offer 20% below asking on the next one is ridiculous.
And they feel perfectly justified in doing so.
I just don't get it.
Are they completely schizophrenic or something?
Vossy makes an extremely valid point - and one which plagues Agents regardless of the market!
Looking at the figures, only 26.9% of the market sample envisage prices falling AT ALL; and that less than one in eight of those see the drop being more than 10%.
INTERESTINGLY, in the RM Consumer Confidence Survey for Q1 (see their website), 32.3% believed house prices were in for a fall.
Things must be getting better - and these are the prospective buyers who are telling us...!
Rant if you remember rents fell a lot in 2008-9 due to the same thing. Looks like we have a big return of the accidental landlord again.
A lot of them are waiting for the socalled market to improve, I think they have misjudged the situation and will be worse off than if they sold now.
Brit - if that's repeated nationally, then some recent BTL expanders are going to be disappointed by lower yields.
Give it 2 -3 months and people will realise that generally prices are falling. I have no idea when they will realise that we are going to have long term falls.
By the way are estate agents here trying to get there sellers to rent out their properties if they can't sell. There seems to be a massive increase in this in the last month?
The oil tanker of people’s house price expectations cannot turn on a sixpence, not so soon after the 00’s. But turn it will.
When would I advise my daughter to buy? When the majority of the population believe house prices cannot stop falling.
Agreed Vossy!
Perhaps RM could promote making offers of an amount where people feel the market is at....something a little more proactive for its paying members, explaining to its users the worst they will get a "no" from the homeowner and at best a "yes" at the figure they think is right.......A good way for the right prices to be found rather than just chopping at asking prices.
And how many of these purchasers are also Vendors of overpriced property themselves?...and so the madness goes round.