Property prices down this month, up since start of year

The average asking prices of properties new to the market fell 0.4% this month, but the figure has still shown a 6.0% increase since January, according to Rightmove.

The report released today suggests that the overall rise has been fuelled by a shortage of saleable property.

Miles Shipside, commercial director of Rightmove said:

“For the equity-rich, 2009 has turned out to be the year of the property deal. Those with a good deposit and a stable job are now finding they can afford a better property than two years ago. This puts them in pole position to snap up the short supply of saleable property in the most popular areas.”

“The south appears to be leading the way in terms of increased activity as it has a higher concentration of the mortgageable equity-rich, which conversely means property coming onto the market is in shorter supply as there are fewer forced sellers.”

Last week the National Association of Estate Agents (NAEA) revealed that demand is now outstripping supply across the UK housing market, with estate agents registering four house hunters to every available property. The Rightmove research confirms this, showing that the shortage of new sellers continues, despite a modest increase of around 10% compared to the previous three months.

Miles Shipside added:

“It’s a mistake to confuse the upturn in enquiries and sales 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.”

“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. Perennially popular areas with good schooling are in, while flats in large blocks and terraces requiring major works are out, meaning new sellers are having to adjust prices accordingly.”

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