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Asking prices drop back

Asking prices drop back

Category: Mortgages

Updated: 22/06/2009
First Published: 22/06/2009

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 It is now over 6 months old so the content may be out of date.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 average asking price of properties new to the market fell for the first time in five months in June, suffering a decrease of 0.4 per cent, but prices are still markedly improved on the start of 2009. It means the average asking price now stands at £226,436, more than a thousand pounds lower than in May, according to latest research from Rightmove.

However, as a result of the equity-rich calling the bottom of the market and staking a claim to the restricted supply of saleable properties, prices are still up six per cent since January.

Although the shortage of new sellers is ongoing, a modest increase of around ten per cent was recorded compared to the previous three month period.

Despite an upturn in enquiries and sales, Miles Shipside, commercial director of Rightmove, warned it would be a mistake to confuse this with a return to a more normal market.

"While conditions are much improved on the darkest days of last year, we are now starting to see some big distortions and wild swings due to the combined effects of recession and restricted mortgage availability," he said

"As the best deals on property and mortgages are only open to the equity-rich, the new stock that agents are looking to attract has to match what these purchasers want to buy and can afford."

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