Property asking prices reach eight-month high

An average increase of more than £8,000 in property asking prices this month has revealed ‘evidence of some life in the market’, according to figures from Rightmove.

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The 3.5% rise in property asking prices month-on-month is the highest leap in prices recorded in the past eight months, and brings the average price of a home across England and Wales to £243,168.

Across the UK the South East and the West Midlands (both at 3.9%) and North West (3.8%) recorded above average increases, while East Anglia saw the smallest increase (0.4%).

While the upturn in asking prices could be seen as a sign that the housing market is strengthening, the property website suggested it could also reveal that there are less properties for sale, providing limited choice for would-be buyers.

Miles Shipside, director of Rightmove, said the increase in asking prices “is most likely attributable to the continued shortage of new property supply.”

The jump in October means that prices are 1.5% higher than a year ago, and reverses the downward trend recorded between June and September, when prices plummeted by a staggering £11,000.

Mr Shipside went on to emphasise that while the figures appear to point to the fact that it is a seller’s market, homeowners may still face a number of stumbling blocks to securing a sale.

“Sellers need to be mindful that the window of opportunity to sell before the traditional winter slowdown is a narrow one, and they risk being left out in the cold for months until the spring market thaw,” he said.

“In addition, estate agents are reporting that mortgages are still no easier to obtain, with risk-averse lenders nit-picking every detail of the mortgage application paperwork, even from buyers who seem squeaky clean.”

Posted by: WarrenWilson Categories: Buying Property, House Prices, Property Advice Tags: , 6 Comments

6 Responses to Property asking prices reach eight-month high

  1. avatar Rob Slack says:

    “The 3.5% rise in property asking prices month-on-month is the highest leap in prices recorded in the past eight months, and brings the average price of a home across England and Wales to £243,168.”

    What do the numbers represent? A 3.5% rise in the prices of new listings or all listings?

    What does “average price of a home”? Sold prices? All houses? Many commentators say the average is closer to £165,000. Can they both be right? Yes if they mean different things.

  2. avatar Ian Longhurst says:

    Surely, the real measure of the health of the house market is a combination of the actual transaction price of house sales that are completed (not sold subject to contract) and the real volume of transactions actually completed. As a potential cash buyer my experience has been that in general sellers have a rose tinted view of the valuation of their houses (as measured by the asking price) and, depending on their real need to sell or move house, a more practical willingness to recognise that their house is only worth what someone is willing to pay for it. There are too many properties on the market that have been offered for sale for up to three years (or more) at asking prices that are totally unrealistic. To a serious cash buyer these offerings are simply a fog that we have to navigate through to get to the reality and give proper substance to the house market in the U.K. To waste my time making more realistic offers to these dreamers is something that I have learnt to avoid. It is the house agent’s job to advise their clients more realistically on asking prices so as to really stimulate a more active market place.

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  5. Across the whole country there is no shortage of properties for sale. Surely this can only be regional?

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