Asking prices for homes new to the market have fallen 2.1% in the last month, Rightmove reported this morning.
The fall follows last month’s drop of 1.6%, but there is still a huge gap between the selling prices quoted by Halifax and Nationwide, of £163,981 and £168,731 respectively, and Rightmove's current asking price of £231,543.
The drop in asking prices means that house prices are virtually identical to what they were last year and have fallen by an average of just 4.1% since the financial crisis began four years ago.
Rightmove says that low transaction levels are continuing, with the supply of new sellers 30% below 2007 levels.
Rightmove director Miles Shipside said the housing market is in ‘limbo land’, with restricted numbers of willing sellers and financially capable buyers.
He said: “It seems that this stalemate can continue indefinitely, until it is broken either by an improvement in upside factors, such as a relaxation of mortgage finance, or by a further marked deterioration in employment and a corresponding increase in forced sales at bargain basement prices.”
He added: “We are four years into this journey and it still looks like a long road ahead.”
Meanwhile, a separate report, by property search engine Home, says that average time on the market has risen by nine days to 122 days – 22% longer than August last year. If London were taken out of the equation, time on market would be even longer. In London, average time on the market is 91 days – and even that is creeping up.
The report says: “2011 is proving to be a slower and leaner year for UK property sales than 2010.”
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Comments
Chris Peacock: I am a little confused. The BBC story you show a link to relates to the DCLG report (and relating to ASKING prices...), not Land Reg. The next LR Index is not due until 26 August.
Interestingly, it shows an INCREASE in prices month-on-month (but decrease Y-o-Y) - complete opposite to RM.
Pick a set of figures - ANY set of figures, from the pack. Now shuffle them...
Sorry to do this to you Ray... but the latest land registy figures came out today!
http://www.bbc.co.uk/news/business-14541937
I don't mean to be a doom and gloom merchant and whilst I appreciate the sentiment for hope, look at the obvious! High unemployment, little economic growth, non-existent wage inflation coupled with 5% RPI. Partner these things with struggling financial markets, cautious lenders and sky rocketing commodity prices.
Where exactly are the signs of a improving housing market in all of this I ask you?
Everybody knows that the only thing keeping property prices from spiralling rapidly downwards are the near 0% interest rates - supply and transactions won't be an issue if people have no choice but to sell. While these rates look set to continue for a while, they cannot last forever (unless we go down the Japanese route).
@Ray - There is a YoY figure so just ignore the monthly figure.
Why doesn't this Shipside man just SHUT-UP and give it a rest. That goes for all the other pontificators on prices - every day there seems to be another one. A fraction up or a fraction down - tomorrow the house I want will be £199,000 instead of £200,000, or will it be £201,000? Stats. every three months would probably mean something to most people.
OMG, what have I said!
London asking prices falling is good news after all Russian Billionaires can't buy them all.
Yes stalemate to continue for foreseeable future......the dizzy heights of 2007 look a distant memory.
This of course will only be true until September when the clamour for autumn stock starts.
Prices currently 0.3% off Year on Year, as they have risen in the first half and will fall in the second half, just like last year.
Stagnation remains.
I see Miles has come around to reality a bit since last month though.....
[“It seems that this stalemate can continue indefinitely, until it is broken either by an improvement in upside factors, such as a relaxation of mortgage finance, or by a further marked deterioration in employment and a corresponding increase in forced sales at bargain basement prices.”]
He got it half right anyway..... Increased lending will push up volumes. But as has previously been discussed, falling prices lead to supply and transactions both falling off a cliff, as happened in 2008.
London initial asking prices were down more than the average at minus 3.4% MoM. Rest of the country is now masking falls in London???