Average asking prices fall – great news for buyers

Average asking prices fell 1.7% (£4,138) this month – the first time since January according to property website Rightmove.

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This means that that people hoping to sell their homes will have to cut their asking prices further if they want to be successful.

Director of Rightmove, Miles Shipside, said that the level of unsold stock in the market remained high at circa 75 homes per estate agency branch.

“The fact that we have not seen major price falls in the UK and that many areas are not awash with ‘for sale’ boards may lead some sellers to be over-optimistic with their pricing.”

“New seller numbers may be down some 30% on the period prior to credit-crunch, but the numbers achieving a successful sale are down by half and average unsold stock levels are creeping up.”

“Sellers need to adjust, as this new world is the new norm,” he added.

Strong competition will make selling a home difficult over the summer – especially with the added distraction of the Olympics and wet weather.

Current average asking prices of property, just on the market, now sits at circa £242,100, according to Rightmove with the average selling price in England and Wales at just £161,700 in May according to Land Registry.

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Posted by: WarrenWilson Categories: Buying, Estate Agents, For Sale, Latest News, Selling Tags: , , 4 Comments

4 Responses to Average asking prices fall – great news for buyers

  1. avatar Chris Longley says:

    Exactly what I have been saying for the last 9 months!
    So what other financial advice do you experts need from me?

  2. avatar Dinesh Bedi says:

    Hi.
    I’ve just sold my house for 125k which is 25k less than what it would have been worth just before the credit crunch. I was hoping that there would be a knock on effect for my next move from Great Barr to Soliull, but the dilemma is that Solihull appears to be in a property bubble of its own. eg, a house bought in 2005 for 345k was recently on the market for 390k & sold for 365k (no improvements & I wasn’t prepared to go above 335k). And another house bought for 240k/250k in 2005 (no improvements) is on the market for 345k. Would you expect prospective buyers to start off with cheeky bids eg 10%-20% below asking price, negotiate from there & be prepared to be patient? – Could do with some guidance.
    Kind Regards
    Dinesh

    • avatar Chris Longley says:

      Dinesh, as you know their are areas which are property bubbles due to whatever reasons. Prime locations will often sell quickly if its unique or possibly in a catchment area for something.

      In that case you will have to pay market price and the old adage is true that something is only worth what someone will pay……however, same applies that a fool and his money are easily parted.

      There will always be properties we cannot afford are bemused how or why they sell at such prices, when 1 mile a way, they sell at 3/4 of the price.

      You can use Zoopla to find the most recent selling price and judge by the inflation how you think the price has been affected. On a 7 year period we probably looking at prices about the same, like for like in 2005/2012.
      Do not accept Zoopla valuation figures entirely as they are generally estimated and incorrect. Use the selling prices and something like the BoE house price inflation estimator as well. But these are catch all figures and do not account for location variations/town/areas etc.

      However, people in this country are obessessed and fixated on house inflation to the point of bankruptcy. They have no comprehension that higher prices drains more from them in interest………….and the interest owed will almost never change although prices can fall with re corrections to the market as we have seen in the last 3 years.

      Forget prices increases for the next 5 years my freind. The housing market is done for and all the bluster written on these sites is all marketing spiel.

      So put in an offer what you think its worth only by your own observations, not what it is valued at. Put in an offer which is affordable so you have some margin to live comfortably after you mortgage outlay. Always offer 20% below the valuation especially in this market and the aim here is to drive down prices.

      Only the lenders and estate agents profit from high values.

      Just except you will lose some houses while people cannot except their precious price obsession is out of kilt with the market.

      There is a slow motion price crash at the moment while earnings ratios and lending criteria correct the market.

  3. avatar Emma says:

    Home sellers may want to think twice about selling property in today’s market, renting a property out could offer additional income and be a viable temporary solution to minimize revenue loss until the property market recovers.