According to Rightmove, a leading property website, the average asking price for homes put up for sale, has fallen for the first time since January. Average prices fell 1.7%, or £4,138, the first drop in July since 2008. Rightmove said that the number of would-be sellers this month outnumbered successful buyers by around two to one.
People hoping to sell their home now, would as a result, have to lower their asking price further in order to be successful. The wet weather and the distracting nature of the oversold Olympics in London, is in some part, arguably the reason for putting off potential property buyers from viewing homes. According to Rightmove, the level of stock that is unsold remains constantly high, with a figure of around 75 homes per estate agency branch.
According to Miles Shipside, the Director of Rightmove, “The fact that we have not seen major price falls in the UK and that many areas are not awash with ‘For Sale’ boards, may lead some sellers to be over-optimistic with their pricing.” He went on to say that, “New seller numbers may be down some 30% on the period prior to the credit-crunch, but the numbers achieving a successful sale are down by half and average unsold stock levels are creeping up and sellers need to adjust, as this new world is the new norm.”
When compared with actual selling prices, the figures reveal exactly how much home sellers are overestimating the probable value of their homes. Currently, according to Rightmove, the average asking price of a newly marketed property is £242,100, in contrast with Land Registry figures that show the average selling price in England and Wales was just £161,700 in May.
Many people looking for a quick house sale are, as a result of falling house prices and a stagnating property market, turning to registered property buyers, who can make them a cash offer that while lower than the market value, ensures a speedy and efficient house sale, in an otherwise stubborn and tricky financial climate.