A shortage of sellers has pushed asking prices up by 6.9% so far this year, Rightmove reported this morning.
The average asking price now stands at £244,706, a new record for April and up 2.1% on March. It is the second highest asking price average ever recorded, and only £1,529 off the all-time high.
The only region where asking prices have not risen is London.
The number of new listings nationally is down 4% compared with this time a year ago.
Rightmove director Miles Shipside said that asking prices look set to continue to rise.
He said: “Transaction volumes may be historically low but, paradoxically, new seller asking prices are within a grand and a half of a new record high.
“With mass-market buyers still sitting on the sidelines, the size of the active market is a lot smaller, making it easier for an upswing in activity to feed through to an upturn in prices.
“With London prices pausing for breath this month but likely to bounce back next, May looks like an odds-on bet to deliver a new asking price record.
“This should not be confused with an overall market recovery, as while spring may be here, the ongoing chill of the recession is still in the air. However, it is true to say that more estate agents are reporting more activity in more segments of the market.”
Shipside said there were abnormally low new listings during Easter week.
The Rightmove data also shows that the gap is narrowing between the last-advertised asking price on Rightmove and the sold price recorded with the Land Registry. In December the gap was 3.39% but it now stands at 2.95%.
However, the Rightmove asking price of £244,706 stands well clear of the ‘actuals’ currently quoted by Halifax and Nationwide, which are respectively £163,943 and £164,630.
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Comments
Hmm asking prices high, transaction levels low. Hardly a paradox miles-you know, I think I see a way out of this..
"A think tank is predicting that housing transactions will pick up this year to a million.
Ernst & Young’s Item Club is forecasting a 7.5% rise in house sales this year, with a further 7.8% rise next year, to take transactions to 1.08m."
From other story, it just shows no one really knows, if peolple can buy they will, but many are not listing unless they have to move, it will change as it has before, all you can sure of the same fools will continue to post doom and gloom on here.
“With mass-market buyers still sitting on the sidelines" Really? Well, perhaps mystic miles can qualify why they are sitting on the sidelines?
mmmmm its time RM considered its rates and not giving big bites to the hand that Feeds - The Agents after all we pay their wages not the buyers