Asking prices down for 3rd straight month, say Rightmove

It appears the housing market is headed for a double dip after property website, Rightmove, reported a further fall in asking prices in September.

According to Rightmove, asking prices for residential property in England and Wales fell by 1.1% in the 5 weeks to 11 September - the third consecutively monthly fall.

It follows falls of 1.7% in August and 0.6% in July.

Over recent months, since Home Information Packs were abolished, new instructions have outstripped buyer demand. However, the group did point out that the number of properties coming on to the market had fallen during the five-week period.

The latest fall takes the average price of a home listed on Rightmove to £229,767.

Miles Shipside, Rightmove’s commercial director, comments: “The “double-dippers’ will be able to point to a clear downward trend, with new sellers dropping their asking prices for three months on the bounce.

“Conversely, we are also recording the lowest weekly run-rate of fresh sellers since April. This will give some ammunition to those forecasting a flatter price trajectory as it could be an early sign of fresh supply beginning to wane,” he added.

Rightmove added that the average number of unsold properties estate agents had on their books remained at a record high of 79.

The housing market has produced some gloomy news of late and today’s figures are no exception.

Many experts have suggested the market will remain subdued for the rest of the year, as a result of supply outstripping demand, as well as the ongoing lack of mortgage availability.

Furthermore, activity is expected to slow as major spending cuts announced by the Government are likely to dent consumer confidence.

Discuss this in the Finance Markets forums

Story link: Asking prices down for 3rd straight month, say Rightmove