House price gains set to be wiped out
ALL the gains seen in property prices over the past six months will be wiped out by the end of the year, thanks to more aggressive pricing and an increase in the number of houses coming on to the market, property website Rightmove will say today.
The forecast forms part of its monthly survey of average asking prices, which revealed that new sellers have cut their asking prices for the first time this year. The 0.6 per cent reduction trimmed the annual increase to 3.7 per cent in July from five per cent the previous month. The average property asking price now stands at £236,332, down from £237,767.
The number of unsold homes per agent jumped by almost 25 per cent in the first half of the year and new sellers outstripped new mortgage approvals by five to two.
Rightmove said that sellers will need to continue to be more realistic in their pricing given that the number of mortgage approvals seems rationed at around 11,000 a week compared to the consistent weekly rate of around 30,000 newly marketed properties.
Miles Shipside, commercial director of Rightmove, said: “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.” He added: “This is likely to see the average price gains of seven per cent for the first half of the year wiped out by year-end.”
The dip in asking prices adds to the wider evidence of growing malaise in the UK housing market. The Nationwide survey for June showed only a slight increase in house prices while the Halifax survey actually revealed that house prices fell last month. A sustained dip is not yet seen as likely by analysts, but substantial gains this year have been ruled out.
ASKING PRICES IN ENGLAND & WALES
North
Avg. Price July 10 £151,510
Avg. Price June 10 £152,118
Monthly Change -0.4%
Avg. Price July 09 £144,431
Annual Change 4.9%
North West
Avg. Price July 10 £168,853
Avg. Price June 10 £169,819
Monthly Change -0.6%
Avg. Price July 09 £164,132
Annual Change 2.9%
Yorkshire & Humberside
Avg. Price July 10 £161,263
Avg. Price June 10 £163,744
Monthly Change -1.5%
Avg. Price July 09 £161,552
Annual Change -0.2%
East Midlands
Avg. Price July 10 £166,649
Avg. Price June 10 £165,532
Monthly Change 0.7%
Avg. Price July 09 £156,708
Annual Change 6.3%
East Anglia
Avg. Price July 10 £216,849
Avg. Price June 10 £221,944
Monthly Change -2.3%
Avg. Price July 09 £219,828
Annual Change -1.4%
West Midlands
Avg. Price July 10 £194,337
Avg. Price June 10 £189,049
Monthly Change 2.8%
Avg. Price July 09 £189,028
Annual Change 2.8%
Wales
Avg. Price July 10 £170,402
Avg. Price June 10 £168,951
Monthly Change 0.9%
Avg. Price July 09 £169,109
Annual Change 0.8%
South West
Avg. Price July 10 £262,072
Avg. Price June 10 £257,502
Monthly Change 1.8%
Avg. Price July 09 £248,616
Annual Change 5.4%
South East
Avg. Price July 10 £304,931
Avg. Price June 10 £308,920
Monthly Change -1.3%
Avg. Price July 09 £288,614
Annual Change 5.7%
Greater London
Avg. Price July 10 £422,248
Avg. Price June 10 £429,597
Monthly Change -1.7%
Avg. Price July 09 £402,761
Annual Change 4.8%