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Property asking prices soar

Property asking prices soar

Category: Mortgages

Updated: 15/02/2010
First Published: 15/02/2010

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 It is now over 6 months old so the content may be out of date.

Home sellers have been told they might soon have to lower their sights, after property asking prices jumped by more than 3% in February.

New sellers have been taking advantage of the low number of properties currently for sale, to leave the average asking price at £229,398, more than £7,000 higher than in January, said Rightmove.

It was the largest month on month increase seen since April 2007, while prices in the capital reached a new record high of £427,987.

However, the supply of new sellers also continued its recent upward trend, suggesting those with their properties on the market might soon not have everything their own way.

"Sellers are starting to appear in greater numbers, but they must realise this market is more akin to the mortgage-rationed times of the 1970s and 1980s than to more recent times of relatively easy mortgage availability," warned Miles Shipside, commercial director of the property website.

"For individual sellers it's hard to grasp the bigger picture and they rightly hope they will find a buyer who can get the required share of the rationed finance that is available.

"This works after a fashion while the number of sellers remains limited. However if sellers return to the market in larger numbers the current upwards price pressure will not be sustainable with the restricted number of buyers."

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