A massive increase in properties coming on the market, up 45% since last Month, sees sellers having to drop their asking prices, according to Rightmove’s new House Price Index (HPI) figures.

This has left the index down -0.6%, which in reality represents a flattening of prices, however Rightmove.co.uk predict that the 7% gains achieved in asking prices so far this year will be wiped out by the year end.

Miles Shipside, commercial director of Rightmove, comments:

“The number of new mortgages being approved each month is less than half the number of new sellers, with the imbalance being exacerbated by the increase of nearly 50% in the number of properties coming to market compared to a year ago. More aggressive pricing is now the order of the day, which means that conditions are ripe for a strong buyers’ market in the second half of 2010.

The end of spring is typically a touch time as the market takes a summer break and so it is not surprising that prices sellers can ask has fallen.

Of course this is a national figure and regionally the decrease in asking prices has only been reported in the North West, North East, London and the South East. The Midlands, South West and Wales have still seen some increases, albit small.

For more information download the full report: http://www.rightmove.co.uk/news/files/2010/07/july-2010.pdf

More from Just Do Property:

• Rightmove.co.uk: A Mere £216 – Price “standoff” causes lowest March rise ever
• Rightmove.co.uk reports “melting” asking prices down 1.7%
• FindaProperty.com Rental Index: Asking Rents up 2.3% since March!
• Government May HPI figures report 11% increase from May 09
• RICS announce a fall in prices in their Housing Market Survey – but really it’s showing flat!