The Rightmove.co.uk House Price Index (HPI) for November 2011 sees a remarkable fall in house for sale prices and seller numbers.
The November figures reported a large fall of -3.1% which is in complete contrast to the sizable positive 2.8% rise last month.
This places the average asking price coming to the market at £232,144, down by a massive £7,528 – in just one month.
Unsurprisingly this is the largest monthly fall since December 2007, but more surprisingly the 3rd largest percentage fall on record.
Seller numbers down
The uncertain economic outlook stemming from the Eurozone is also spooking seller numbers, with listing numbers down 13% on previous months.
This represents the lowest November level since Lehman Brothers collapsed!
Both a downturn in seller numbers and asking prices sends strong early warning signals to any sector reliant on consumer spending.
The Upside is….
As with most negative news there is likely to a be a flip side positive outcome.
With the impact of the Eurozone hitting the market, we are very likely seeing a early start to the normal seasonal slowdown.
This in turn will help to strengthen buyers’ negotiating power allowing Winter bargain opportunities’ for investors fuelled by rising rents and intensifying competition among buy-to-let lenders.