New sellers drop asking prices

| July 19, 2010 | 0 Comments

Home owners coming onto the market have dropped their asking prices for the first time this year, according to Rightmove.

The property portal reported a 0.6% decline in the average new vendor’s ambitions in July, amounting to £1,435 in hard cash.

The website is currently accommodating an additional 30,000 properties a week, up 45% compared to a year ago, and its latest Consumer Confidence Survey indicates that home-mover sentiment is “faltering”.

The number of unsold homes per estate agent jumped by almost 25% in the first half of 2010, as a surge in new sellers outstripped new mortgage approvals, and the firm is therefore forecasting that average first-half price gains of 7% will by wiped out by Christmas.

Commercial director, Miles Shipside, comments: “Estate agents are suffering from podgy portfolios, and buyers’ fitness to purchase is in correspondingly poor shape.”

He adds: “With agents beginning to choke on a surfeit of new stock, sellers are going to have to price at bargain levels and bullishly promote their properties in order to stand out from the crowd.”

According to Mr Shipside, sellers who act quickly still have a chance to benefit from some of the price gains made in the last eighteen months but to do so must market their properties realistically from the outset.

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