“Asking” to “selling” price gap narrows to 11%

| June 16, 2009 | 0 Comments

New research from the Royal Institution of Chartered Surveyors (Rics) shows that house sellers are now achieving a higher proportion of asking prices.

A survey of Rics members has revealed that the gap between selling and asking prices has narrowed to 11% in the past three months, whereas in August of last year the discrepancy was widening.

The trend shows marked regional variations, with vendors in the North achieving only 74% of asking prices, while in London the average selling price is 93% of the marketed price.

Rics senior economist, Brigid O’Leary, comments: “As new instructions continue to decline, a lack of supply is providing some support to house prices and that has helped to close the gap.”

The news comes alongside reports of buyer interest increasing and will be taken as further evidence that the market is bottoming out.

Last week, the Rics reported that in May, the balance of surveyors seeing a rise, rather than a fall, in buyer interest rose to its best level since August 1999.

However, Ms O’Leary points out “while the pace of the downturn may be easing, the housing market will still be challenged by an uncertain economic backdrop, the threat of rising unemployment and continued restrictions on mortgage finance”.

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