Rightmove pleads for smart asking prices
Rightmove has reported that the average asking price for a home in England and Wales was down an annual 9% over the four week to the 7th March.
New listings for the period fell 57% year-on-year, to 79,000.
However, the property website found that in March, the average asking price for a home rose 0.9% on February, to £218,081.
London led the trend with asking prices increasing by an average 2.9%, to £399,867.
Traditionally, house prices increase during the spring and according to Rightmove, this month’s rise of less than one per cent reflects continued restricted mortgage lending.
With house price falls expected to continue throughout 2009, the firm warns vendors that initially overpricing a property risks a heavy loss later, as buyer interest is centred on properties priced at around 25% below peak levels.
The company repeats its advice of a year ago, when it urged sellers to “get smart” and avoid chasing prices down in a deteriorating market.
The website’s commercial director, Miles Shipside, explains that vendors who heeded this advice “may well have sold at half the discount that those who over-priced are now facing”.
Rightmove also found that in February / March, interest from potential buyers continued to rise with enquiries soaring 120% on this time last year.