Date Published 22 December 2012
The largest ever fall in asking prices has been reported by Rightmove this morning.
It says that new sellers have chopped their asking prices by an average of 3.3%, equating to £7,772. In London, asking prices have come down by an average of almost £20,000, or 4%, to stand at £464,398, down from £483,709 in November. It is the largest fall in London since 2007.
Nevertheless, the latest average asking price of £236,761 is still way ahead of actual sales prices as quoted by the Land Registry, Halifax and Nationwide.
Rightmove is also forecasting a national rise in house prices of 2%, saying there will be a shortage of supply.
Rightmove director Miles Shipside said: `December is the most likely month for sellers coming to market to get very real about the price they ask for their homes. This year, they’ve gone a bit further than ever before.`
On Rightmove’s predictions for next year, Shipside said that the froth would continue to come off the London market. However, he warned that transaction levels would stay muted, with new listings likely to be around 1.2m.
Shipside said of the gap between asking and selling prices that this is now just 3.7%, and said there was ‘a very strong correlation’ between now and the boom market of 2007, when sellers accepted bids of only 2.6% below their asking price.
He said: `While cash buyers still have the greatest negotiating power, they are more prevalent and wield less power than they used to. It is estimated that around one-third of all transactions are currently cash purchasers and this ‘wall of cash’ shows no sign of abating, despite earlier predictions that it wouldn’t last.
`This helps to underpin prices in favoured locations and fuel demand in investor properties.`
However, the gap between asking prices on Rightmove and actual prices quoted by other sources still looks to be in need of considerable further explanation.
Halifax and Nationwide’s latest mortgage-agreed house sale figures are £158,426 and £164,153 respectively – in agreement with the Land Registry’s latest average selling price of £161,605, quoted for October.