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Price of properties coming to market on the up

Price of properties coming to market on the up

Category: Mortgages

Updated: 18/06/2012
First Published: 18/06/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The price of new property coming onto the housing market increased again in June.

It is the third month in a row that the asking prices set by UK sellers have increased, according to Rightmove.

Prices of new homes that became available in June increased by an average of almost £2,500, buoyed by more robust southern regions with new record asking prices in London and the South East.

The average asking price in England and Wales is currently £246,235, with prices up by 2.4% over the last 12 months.

However, in reality, sellers are accepting offers that are on average 13% lower than their asking prices.

Figures also show that asking prices have not kept up with inflation since August 2007.

The only exception has been London where average asking prices have been 3% ahead of RPI since August 2007, with Wales falling furthest in real terms over this period.

"While the national average price of property coming to market has set new records in each of the last three months, sellers should not break out the bunting in celebration until they have done their homework," said Miles Shipside, director at Rightmove.

"It remains a very local market ruled by property style and location, and a few minutes study will reveal whether your property is hot or not.

"Agents report a two-tier market where those who can afford to price realistically are selling, while those who are equity-poor are struggling to sell as they often have to price up to make any prospect of a move viable."

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