rightmove - Asking prices up

Oh the deluded vendors. Don't they realise that you can ask a million pounds for your property but no-one will ever buy it. Instead of the fools having to wait two years to sell their house they'll now have to wait 3!

http://www.telegraph.co.uk/news/4995641/House-prices-rise-for-second-month-says-Rightmove.html

House prices rise for second month, says Rightmove

House prices have risen for the second month in a row as sellers began rejecting unfavourable offers for their properties, a survey has suggested.



Last Updated: 6:25PM GMT 15 Mar 2009

Prices are rising slightly and there's more interest in buying property Photo: PA


The average asking price in England and Wales increased by 0.9 per cent, or nearly £2,000, during the four weeks to March 7, following a 1.2 per cent jump during the previous month, according to property website Rightmove.
But the group warned that the increase masked a wide disparity between the valuations of buyers and sellers. Homeowners are unwilling to acknowledge the full extent of the reduction in value of their houses while those looking to move are only targeting bargains, the website said.

Related Articles

• New homes being built at lowest level for 20 years, National House Building Council says
• Credit crunch: 15 sellers to every buyer
• House price falls continue despite increase in activity
• House prices fall as buyers scent bargains
• Average house prices back below £150,000

It added that estate agents could be contributing to the trend by agreeing to market properties at unrealistically high prices in a bid to win new business at a time when only a limited number of homes were being put up for sale.
Rightmove said there was evidence of "buyer appetite" for homes that cost around 25 per cent less than at their peak, but warned that this discount appeared to be putting many people off marketing their home, limiting the traditional spring surge in properties being put up for sale.
Only 78,901 homes were put on the market during the four weeks, 57 per cent fewer than during the same period of 2008 and the lowest level for March since 2003.
But interest from potential buyers is continuing to increase on the back of recent interest rate cuts and house price falls, with Rightmove reporting a 120 per cent jump in enquiries compared with this time last year.
Agents also said fewer sales were falling through, while there was increased competition for the best properties, with buyers now feeling more confident that they are close to the bottom of the market.
Interest from investors has also picked up markedly, as yields on property are looking increasingly attractive compared with returns on other investments, despite falling rents.
But the group said mortgage funding remained scarce, and warned that this decreased the odds of a speedy recovery in the market.
Miles Shipside, commercial director at Rightmove, said: "Some sellers are still pricing wishfully high, though it is encouraging that elements of the market have adapted relatively quickly to find a new price floor at a discount of around 25 per cent from peak.
"We are seeing a big jump in enquires, looking for those best buys. However, it is disappointingly predictable that the banking sector is still in the early stages of coming clean about its levels of toxic debt, limiting funding for one of the few bright spots of consumer demand in the economy."
Greater London saw the biggest jump in asking prices, a rise of 2.9 per cent, followed by the North West at 2.6 per cent.