The recent House Price Index from Rightmove.co.uk for July 2012 shows a fairly large fall in the asking price by sellers. The average is down -1.7% against last month and now stands at £242,097.
This is however against the backdrop of a 1.0% rise last month which was 1 in a run of 5 consecutive positive months – leaving the 6 month change for 2012 of 3.8%
Kay facts reported:
- The fall in July was the largest price drop in July for the past four years and represents a fall of £4,138
- The number of new sellers now outnumbers the successful buyers by nearly 2:1. This ‘summer selling challenge’ was been attributed to low viewing figures due to the weather and distractions with the Olympics.
- Potential buyers are reported to spend just 2.7 seconds judging a seller’s summary advert before deciding to look further
- The monthly average is 2.3% above the average a year ago in July 2011
Miles Shipside, director of Rightmove, comments:
“Those keen to sell this summer have the challenging confluence of miserable viewing weather, the continuing credit-crunch plus a sporting distraction of Olympic proportions. Those who have been on the market for many months might consider the prospects of achieving a sale to be somewhat of an Olympian challenge given that actual sales completions are just half what they were five years ago.”
All regions apart from the West Midlands have seen a fall in asking prices, with the largest being in London at -3.6% and the smallest fall being Wales at -0.4%.
The West Midlands saw a 2/0% increase taking the average price to £191,121, however this does represent an annual change of -0.9%.
However London, which has seen the largest fall in asking prices, is still 6.4% above those asked a year ago. Hackney was also the top performing London borough actually with a positive monthly change of 0.6%.
Nationally all property types have seen a fall this month in asking price, however the annual change across property types is still positive.
Flats and apartments have the best increase in asking prices at 4.1% and an average of £198,658.
Semi-detached houses have the least increase at 1.5% and an average value of £199,599 – now nearly on a par with flats.